1 / 9

Taiwan: One of the Tiger Economies of Asia with a Special Roar

Taiwan, South Korea, Hong Kong and Singapore are called the tiger economies of Asia due to their sudden economic boom from the 1960s to 1990s. However, Taiwan became the only Asian tiger which showed positive GDP growth at 3.1% in 2020, securing the first rank in Asia-Pacific. In 2021, its GDP grew 6.45%, making it the fastest since 2010. Visit: https://bit.ly/42XtAdU

AsiaFundManagers1
Download Presentation

Taiwan: One of the Tiger Economies of Asia with a Special Roar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Taiwan Economy

  2. Taiwan Economy - Overview • Taiwan belongs to a group called the Four Asian Tigers, along with South Korea, Singapore, and Hong Kong. These regions experienced rapid industrialisation and high economic growth rates between the 1960s and the 1990s. Later, they developed into high-income economies. • The country has a total population of approximately 23.3 million. Taiwan was able to keep its unemployment rate relatively steady despite the pandemic. Unemployment slightly increased from 3.7% in 2018 and 2019 to 3.9% in 2020 and 4.0% in 2021. The rate decreased to 3.7% in 2022 and the IMF expects it to remain the same in 2023.

  3. Taiwan - GDP • In 2020, despite the Covid-19 outbreak, Taiwan was the only Asian Tiger that reported positive gross domestic product (GDP) growth at 3.1%, ranking first in the Asia Pacific region. A year later, Taiwan’s GDP grew by 6.45%, which was the fastest pace since 2010. However, growth dropped to 2.5% in 2022. • For 2023, the International Monetary Fund (IMF) expects Taiwan’s economy to expand by 2.1%.

  4. Taiwan - GDP (Source: IMF WEO Update April 2023)

  5. Currency and Central Bank • Taiwan’s official currency is the New Taiwan dollar or TWD, which is divided into ten dimes and 100 cents. Although, cents are almost never used in transactions. The TWD has been in circulation since 1949 after replacing the Old Taiwan dollar. The nation is also developing a central bank digital currency (CBDC). • The persistent global inflation is also affecting the Taiwan economy. IMF forecasts 1.9% for this year. The Central Bank of the Republic of China (Taiwan, CBC) is expecting inflation to drop below 2% in 2023.

  6. Industry and Trade While the country is known for its semiconductor and electronics industries, Taiwan’s economy is still dominated by the services industry. The services sector accounted for more than 60% of Taiwan’s GDP in 2022, employing about 60% of the labour force.

  7. Industry and Trade • The service sector is characterised by a lack of competitiveness. Moreover, large labour-intensive industries have started relocating from Taiwan to other countries with less labour costs. • On the other hand, Taiwan’s tourism industry is booming. In 2019, the country hit a record of 11.84 million foreign visitors. However, overseas travel in Taiwan was also impacted by the pandemic. • In 2020, tourists brought only USD 1.8 bn into the country – eight times less than the previous year.

  8. Stock Exchanges The Taiwan Stock Exchange Corporation or TWSE was established in 1961 and has operated as Taiwan’s sole stock exchange since 1962. The Taiwan Capitalization Weighted Stock Index (TAIEX), more commonly known as the Taiwan Weighted, is the exchange’s main stock index. It covers all listed companies on the TWSE, except preferred stocks, full-delivery stocks, and newly listed stocks.

  9. Read more at… www.AsiaFundManagers.com Find us on Social!

More Related