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Economy in Taiwan |
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| Taiwan has a dynamic capitalist economy with
gradually decreasing guidance of investment and foreign trade by
government authorities. In keeping with this trend, some large
government-owned banks and industrial firms are being privatized. Exports
have provided the primary impetus for industrialization. The trade surplus
is substantial, and foreign reserves are the world's third largest.
Agriculture contributes less than 2% to GDP, down from 32% in 1952. Taiwan
is a major investor throughout Southeast Asia. China has overtaken the US
to become Taiwan's largest export market. Because of its conservative
financial approach and its entrepreneurial strengths, Taiwan suffered
little compared with many of its neighbors from the Asian financial crisis
in 1998. The global economic downturn, combined with problems in policy
coordination by the administration and bad debts in the banking system,
pushed Taiwan into recession in 2001, the first year of negative growth
ever recorded. Unemployment also reached record levels. Output recovered
moderately in 2002 in the face of continued global slowdown, fragile
consumer confidence, and bad bank loans; and the essentially vibrant
economy pushed ahead in 2003-04. Growing economic ties with China are a
dominant long-term factor, e.g., exports to China of parts and equipment
for the assembly of goods for export to developed countries. (CIA World
Fact Book) |
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