Taiwan Overview

Taiwan is one of Asia's most successful economies which dynamism mainly relies on its external trade and its network of companies involved in high added value activities, such as electronic subcontracting. After a two-year economic slowdown from 2001 to 2003, the island finally has recovered its growth since 2004. GDP growth rate was 3.6% in 2003, 3.2% in 2004 and 3.4% in 2004. The IMF forecasts a 4.3% growth rate in 2006. Public funds depletion is the main weak spot of the economy.

The agriculture sector only provides about 2% of the GDP and mining natural resources are limited. Industry accounts for around 30% of the GDP. Even though traditional industries such as iron and steel, chemical, mechanical industries, still represent almost half the industrial production, new industries are the most dynamic. Taiwan is one of the world's main supplier of semi-conductors, computers and mobile phones. The manufacturing industry provides a quarter of the GDP; it is progressively relocating to China, due to continuously increasing wages.

Taiwan is characterised by its export performances. In 2002, the country became a member of the WTO. Taiwan's top three export partners are the United States, Hong-Kong and China. Taiwan mainly exports electrical, electronic and computing equipment goods. Its top three import partners are Japan, the United States and China. The European Union holds a more reduced place in Taiwanese external trade (13% of exports). It mainly imports fuels, minerals and electrical and electronic components.