Taiwan’s Economy: An Overview
Taiwan is the 5th largest economy in Asia and is included in the advanced economies group by the Global Monetary Fund. After years of troubles in hyperinflation and other economic trials this great nation has rebounded and is now one of the powerhouses of Asia. Taiwan’s economy has become more modest in the late because in that same year Taiwanese companies have been permitted to invest in China.
The country’s economy greatly depends on its technology sector, because the country is a specialist in manufacturing outsourcing. The country is advancing up in the market because of its ability to build brands and innovating new technologies. The country also wants to further its biotechnology sector.
Free trade agreements have multiplied in East Asia over the past several years but Taiwan is not a member of the United Nations or other international organizations, and various free trade arrangements as part of Beijing’s efforts to pressure it into unification.
Closer economic links with China bring opportunities for Taiwan’s economy but also bring challenges because of the political differences that remains unsolved between the two countries and also because of China’s slowing growth.
Taiwan’s Economic Outlook
Many Taiwanese feel that Taiwan’s economy recently has been in an alarming disaster because of the low and stagnating wages rate, inequality income, the decreasing domestic industries and falling exports. But a strong recovery in Taiwan’s external sector continues to support solid growth in the country’s manufacturing sector as the year 2016 come to a close. Exports from the country registered in double-digit expansion and industrial production continued showing solid growth, following a two-year high in November.
The Taiwanese economy is expected to accelerate in 2017, sustained by healthy foreign demand for Taiwanese products, especially in electronics and private consumption should benefit from low unemployment which will push to expand the country’s economy by 1.8% in 2017.