Taiwan Economy - 2005

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. 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.

GDP:
purchasing power parity - $576.2 billion (2004 est.)

GDP - real growth rate:
6% (2004 est.)

GDP - per capita:
purchasing power parity - $25,300 (2004 est.)

GDP - composition by sector:
agriculture: 1.7%
industry: 30.9%
services: 67.4% (2004 est.)

Labor force:
10.22 million (2004 est.)

Labor force - by occupation:
agriculture 8%, industry 35%, services 57% (2001 est.)

Unemployment rate:
4.5% (2004 est.)

Population below poverty line:
1% (2000 est.)

Household income or consumption by percentage share:
lowest 10%: 6.7%
highest 10%: 41.1% (2002 est.)

Inflation rate (consumer prices):
1.7% (2004 est.)

Investment (gross fixed):
18% of GDP (2004 est.)

Budget:
revenues: $67.41 billion
expenditures: $76.7 billion, including capital expenditures of $14.4 billion (2004 est.)

Public debt:
32.4% of GDP (2004 est.)

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

Industries:
electronics, petroleum refining, armaments, chemicals, textiles, iron and steel, machinery, cement, food processing, vehicles, consumer products, pharmaceuticals

Industrial production growth rate:
12.2% (2004 est.)

Electricity - production:
158.5 billion kWh (2002)

Electricity - consumption:
147.4 billion kWh (2002)

Electricity - exports:
0 kWh (2002)

Electricity - imports:
0 kWh (2002)

Oil - production:
500 bbl/day (2004 est.)

Oil - consumption:
988,000 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Oil - proved reserves:
2.9 million bbl (2004 est.)

Natural gas - production:
750 million cu m (2001 est.)

Natural gas - consumption:
6.64 billion cu m (2001 est.)

Natural gas - exports:
410 million cu m (2001 est.)

Natural gas - imports:
6.3 billion cu m (2001 est.)

Natural gas - proved reserves:
38.23 billion cu m (2004)

Current account balance:
$21.16 billion (2004 est.)

Exports:
$170.5 billion f.o.b. (2004 est.)

Exports - commodities:
computer products and electrical equipment, metals, textiles, plastics and rubber products, chemicals (2002)

Exports - partners:
China, including Hong Kong 37%, US 16%, Japan 7.7% (2004)

Imports:
$165.4 billion f.o.b. (2004 est.)

Imports - commodities:
machinery and electrical equipment 44.5%, minerals, precision instruments (2002)

Imports - partners:
Japan 26%, US 13%, China, including Hong Kong 11%, South Korea 6.9% (2004)

Reserves of foreign exchange and gold:
$246.5 billion (2004 est.)

Debt - external:
$55.5 billion (2004 est.)

Currency (code):
new Taiwan dollar (TWD)

Exchange rates:
new Taiwan dollars per US dollar - 33.422 (2004), 34.418 (2003), 34.575 (2002), 33.8 (2001), 33.09 (2000)