Written by Min-hua Chiang. Taiwan government revised up economic growth forecast in 2021 to 5.5% in June despite the sudden surge of covid-19 cases since mid-May. This is the fastest growth path since and second only to the post-crisis rebound in 2010 (see Figure 1). The economy is bolstered by thriving exports outlook. Growing domestic investment is another anchor of Taiwan’s economy thanks to the continuous investment repatriation. The greater government consumption is expected to offset the potential fall in private consumption following the constraints on outdoor activities. Taiwan Centres for Disease Control (CDC)’s capability to put the domestic outbreak under control in a month further gives confidence that moderate economic growth this year could be expected.
Written by Chin-fen Chang. As an export-driven economy, Taiwanese manufacturing has suffered a sharp drop in demands overseas during the first half of this year. Local businesses in Taiwan have also been affected by a lack of foreign tourists. Moreover, Taiwanese have been self-restrained in their consumption, suffering from income loss or concerning worse financial conditions to come in the near future. Labour markets also show significant job losses along with cutting regular earnings for those fortunately still on the payroll.
Written by Harry West. The Coronavirus pandemic has presented the world with challenges the likes of which have rarely been seen before. COVID-19 — a disease for which a vaccine is yet to be found — has killed over 300,000 people and infected millions more. As well as the human cost, the virus has had a significant impact on the global economy, with governments across the world implementing social distancing measures as a means for combatting the spread.
Written by Min-Hua Chiang. Despite economic shrinkage, the impact of COVID-19 on Taiwan’s economy is restrained compared to other countries. Singapore (-2.2%), European Union (-2.7%), USA (-4.8%), China (-6.8%) and Hong Kong (-8.9%) have reported a more significant drop in the first quarter of 2020. Taiwan’s success in controlling the spread of COVID-19 has minimized the impact of COVID-19 on its economy. As of May 11 2020, Taiwan reported 440 cases and seven deaths, lower than most other countries in the world.