Taiwan's Economy

Taiwan has a rapidly developed economy. The economy in Taiwan has considerable government guidance of investment and foreign trade. Taiwan's government has ownership of some large banks and industrial firms to influent the economy development. Annual growth average 8.5% in the past four decades. In 1997, the per capita GNP was US$13,198, and the GNP ranked 18th in the world. Taiwan has low unemployment and inflation rate. The unemployment rate is 1.6%; the inflation rate is 4%.

Export has grown fast that makes Taiwan became a major trading countries. Imports amounted to US$114.4 billion and exports reached US$122.1 billion, ranking 15th and 14th in the world. Taiwan's export partners are US, with 27.6%, Hong Kong at 21.7%, EU countries make up 15.2 %, and 10.5% is with Japan. For getting low labor cost, Taiwan has become a major investor in China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam. Taiwan's industries inculd electronics, textiles, chemicals, toys, and food processing. The mainstreams of the nation's indusry are currently heavy and chemical industries, and technology-intensive industries. The development of the informationindustry has been especially striking, ranking 3th in the world.

Taiwan is located at the heart of this dynamic region of East Asia where is seen as the region with the world's greatest development potential at the present time. In extent of economic development, Taiwan is situated between the advanced industrial countries and the developing countries; this not only gives the nation a key position as a successor to the more advanced countries, but also positions it to play the role of a spring board into Asian markets for European and American countries.

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