Economic Outlook - Taiwan

TAIWAN REGION IS 4th LARGEST ELECTRONIC PRODUCER IN THE WORLD, BUT GROWTH IS DECREASING

2019 has a forecast for growth in GDP around 2.0% lower if compared to 2017 and 2018. Decrease is mainly linked to a decrease in demand coming from most important commercial partners, China and Hong Kong SAR. Positive aspects are represented by a robust support performed by public sector to Research & Development, a good external financial position and recent democratic achievements. This scenario allows Taiwan Region to be positioned as 4^th largest electronic producer in the world.

On the other hands, foreign trade is very vulnerable as strictly linked to fluctuations of mainland China and United States, combined to lack of competitiveness in service sector and with infrastructures not comparable to other advanced Asian economies. From political point of view, Taiwan Region is experiencing an increased isolation.

Trade tensions between United States and China has an impact of Taiwanese economy due to its role in Chinese Supply Chain. Taiwan Region exports to China intermediate products, before being exported in United States. To be considered as positive, dynamic sectors like electronics, machinery and chemical industries are very competitive.

Despite the expected decrease in Chinese economy, export are forecasted to be strong, mainly affected by electronic sector. Also import, driven by oil, will grow in the same proportion of export.

Source: COFACE

Taiwanese economy is export-oriented, achieving around 70% of total GDP and moving, in the last 40 year from agriculture to industrial goods (around 98%)

Top export destinations:                      

1) Mainland China and Hong Kong SAR: 40%     

2) ASEAN Countries: 18.3%                     

3) USA: 12%                                           

4) Europe: 9%                                               

5) Japan 7%                                                   

Top export products:

1) Electronics: 33.1% 

2) Information, communication and audio video products:  10.8%  

3) Base metals: 8.8%

4) Machinery: 7.5%

5) Plastic and rubber: 7.1%  

https://tradingeconomics.com 

Source: SkyMinder

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