Economy - overview 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. Real growth in GDP has averaged about 8% during the past three decades. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and foreign reserves are the world's third largest. Agriculture contributes 2% to GDP, down from 35% in 1952. Traditional labor-intensive industries are steadily being moved offshore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in China, Thailand, Indonesia, the Philippines, Malaysia, and Vietnam; 50,000 Taiwanese businesses are established in China. 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 1998-99. The global economic downturn, however, combined with poor policy coordination by the new administration and increasing bad debts in the banking system, pushed Taiwan into recession in 2001, the first whole year of negative growth since 1947. Unemployment also reached a level not seen since the 1970s oil crisis.

GDP purchasing power parity - $386 billion (2001 est.)

GDP - real growth rate -2.2% (2001 est.)

GDP - per capita purchasing power parity - $17,200 (2001 est.)

GDP - composition by sector
agriculture: 2%
industry: 32%
services: 66% (2000 est.)

Population below poverty line 1% (2000 est.)

Household income or consumption by percentage share
lowest 10%: NA%
highest 10%: NA%

Distribution of family income - Gini index 32.6 (2000)

Inflation rate (consumer prices) 0.5% (2001 est.)

Labor force 9.8 million (2001 est.)

Labor force - by occupation services 56%, industry 36%, agriculture 8% (2001 est.)

Unemployment rate 4.5% (2001 est.)

Budget
revenues: $36 billion
expenditures: $36.1 billion, including capital expenditures of $NA (2002 est.)

Industries electronics, petroleum refining, chemicals, textiles, iron and steel, machinery, cement, food processing

Industrial production growth rate -5% (2001 est.)

Electricity - production 149.78 billion kWh (2000)

Electricity - production by source
fossil fuel: 69.48%
hydro: 5.82%
other: 0% (2000)
nuclear: 24.7%

Electricity - consumption 139.295 billion kWh (2000)

Electricity - exports 0 kWh (2000)

Electricity - imports 0 kWh (2000)

Agriculture - products rice, corn, vegetables, fruit, tea; pigs, poultry, beef, milk; fish

Exports $122 billion (f.o.b., 2001)

Exports - commodities machinery and electrical equipment 55%, metals, textiles, plastics, chemicals

Exports - partners US 23.5%, Hong Kong 21.1%, Europe 16%, ASEAN 12.2%, Japan 11.2% (2000)

Imports $109 billion (f.o.b., 2001)

Imports - commodities machinery and electrical equipment 50%, minerals, precision instruments

Imports - partners Japan 27.5%, US 17.9%, Europe 13.6%, South Korea 6.4% (2000)

Debt - external $40 billion (2000)

Currency new Taiwan dollar (TWD)

Currency code TWD

Exchange rates new Taiwan dollars per US dollar - 34.494 (yearend 2001), 33.082 (yearend 2000), 31.395 (yearend 1999), 32.216 (1998), 32.052 (1997), 27.5 (1996)

Fiscal year 1 July - 30 June (up to FY98/99); 1 July 1999 - 31 December 2000 for FY00; calendar year (after FY00)

NOTE: The information regarding Taiwan on this page is re-published from the 2002 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Taiwan Economy 2002 information contained here. All suggestions for corrections of any errors about Taiwan Economy 2002 should be addressed to the CIA.