Taiwan Economic Outlook
Technology and manufacturing hub:
Taiwan is a global leader in semiconductor manufacturing, with Taiwan Semiconductor Manufacturing Company (TSMC) dominating the advanced chip industry. The economy is heavily reliant on high-tech exports, particularly semiconductors, electronics, and precision machinery. Taiwan’s strong industrial base, efficient infrastructure, and skilled workforce have made it an indispensable player in global supply chains.
Export-dependent economy:Taiwan's economy is deeply integrated into global trade, with exports accounting for over 60% of GDP. The U.S. and China are its largest trading partners, though geopolitical tensions have created economic risks. The government's focus on supply chain resilience and diversifying trade partners—particularly through stronger ties with the U.S., Japan, and the EU—aims to mitigate risks from potential trade disruptions with China.
Geopolitical uncertainty:Taiwan faces unique economic risks due to its complex political relationship with China. While economic ties remain strong, Beijing's increasing military pressure and efforts to diplomatically isolate Taiwan create uncertainty for investors. In response, Taiwan has been increasing defense spending, strengthening alliances with democratic nations, and reducing economic dependence on China by expanding ties with Southeast Asia and the West.
Taiwan's economic prospects:The Taiwanese economy is expected to maintain solid growth, driven by continued demand for advanced semiconductors, AI-related technologies, and 5G infrastructure. However, challenges include global economic headwinds, ongoing geopolitical uncertainties, and domestic energy security concerns. Taiwan’s long-term success will depend on sustaining its technological edge, diversifying export markets, and navigating geopolitical risks without disrupting economic stability.
Taiwan's Macroeconomic Analysis:
Nominal GDP of USD 757 billion in 2023.
GDP per capita of USD 32,466 compared to the global average of USD 10,589.
Average real GDP growth of 3.3% over the last decade.
Sector Analysis
In 2023, services accounted for 60% of overall GDP, manufacturing 34%, other industrial activity 5%, and agriculture 1%. Looking at GDP by expenditure, private consumption accounted for 48% of GDP in 2024, government consumption 13%, fixed investment 26%, and net exports 13%.International trade
In 2021, manufactured products made up % of total merchandise exports, mineral fuels %, food %, ores and metals % and agricultural raw materials %, with other categories accounting for 24% of the total. In the same period, manufactured products made up % of total merchandise imports, mineral fuels %, food %, ores and metals % and agricultural raw materials 69%, with other goods accounting for 2% of the total. Total exports were worth USD 475 billion in 2024, while total imports were USD 394 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 3.3% in the decade to 2024. To read more about GDP growth in Taiwan, go to our dedicated page.
Fiscal policy
Taiwan's fiscal deficit averaged 0.4% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 3.7% in the decade to 2024. For more information on Taiwan's unemployment click here.
Inflation
Inflation averaged 1.3% in the decade to 2024. Go to our Taiwan inflation page for extra insight.
Monetary Policy
Taiwan's monetary policy rate ended 2024 at 2.00%, up from 1.88% a decade earlier. See our Taiwan monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the Taiwan dollar weakened by 3.7% vs the U.S. dollar. For more info on the Taiwan dollar, click here.
Economic situation in Taiwan
Revised data pushed Q4’s economic growth rate up to 2.9% year on year (initial estimate: 1.8% yoy). The upward revision was due to faster-than-previously-estimated expansions in private spending and exports. In 2024 as a whole, the economy soared 4.6% (initial estimate: 4.3% yoy), the highest figure since 2021, as rising global demand for the country’s IT products fueled exports and investment. Turning to the first quarter of this year, our Consensus is for economic momentum to remain healthy amid the ongoing rise in global IT demand. Available data backs up this projection: In January–February, goods exports grew well into the double digits, and industrial production was up in January despite the Lunar New Year festivities reducing the number of working days.Taiwan Economic Forecasts
Projections out to 2034.49 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 26 expert analysts.
Want to get insight on the economic outlook for Taiwan in the coming years? FocusEconomics collects projections out to 2034 on 49 economic indicators for Taiwan from a panel of 26 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Taiwan economy. To download a sample report on the Taiwan's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.