Analysis of Taipei City Economic Situation

2021 Q1

In 2021, as countries have made progress in vaccine coverage, it is expected that global economic activity will slowly recover. Although the global epidemic is still volatile, the performance of several economic indicators in Taipei City in the first quarter is still quite impressive, including the number of company registrations increased by 0.79% over the years, sales increased by 8.89%, taxation increased by 8.55%, and the housing market performance has gradually recovered and stable, with a year-on-year increase of 15.45% in transaction volume. However, the impact of the epidemic continued to hit tourism and accommodation, and the occupancy rate fell to 30.24%.

2020 Q4

The economic recession in 2020 was mainly affected by the COVID pandemic. However, the performance was relatively stable in Taipei City, the main economic and commercial activities were operating as usual. The sales revenue increased by 1.76%, the real estsate transaction was booming by increasing 11.54%, the land prices rebounded and entrepreneurial momentum also grew steadily. However, foreign investment and tourism were still shrinking and need to be recovered.

2020 Q3

With the proper control of the domestic epidemic, the performance of several economic indicators has been stabilized, the number of companies registered with the overall company number has grown steadily, and the start-up boom has resumed, making the number of newly established companies once again set a new record; the real estate transaction registration transaction performance is eye-catching, showing a double-digit of Growth, and the decline in sales, price index, and tourism and residential occupancy rates has been slowed down for two consecutive quarters, which shows that the momentum of economic growth has gradually improved.

2020 Q2

Economic dynamics: Affected by the continuous spread of COVID-19, the epidemic limited global economic activity. Various control policies affect the development of the industrial economy and consumption strength, Economic data in the second quarter showed weak performance, including the number of company registration decreased by 0.04%, the sales revenue decreased by 0.79%, the tax revenue decreased by 5.41%. The amount of FDI also decreased, the CPI decreased by 0.67%, the unemployment rate rose to 3.8%, the real estate transasction decreased by 7.75%, the residential occupancy rate fell to 13.67%. As the pandemic slows down, it will help demand quickly recover, and the economy is expected to recover.

2020 Q1

Economic dynamics: Affected by COVID-19, the global economic growth momentum slows down in 2020, affects domestic and foreign demand and consumption strength. Despite the epidemic limited economic activity, Taipei City's number of company registrations and the total capital amount has presented stable progress. At the end of March 2020, the number of registered companies national-wide was 1,596,391. Among these companies, 179,372 were registered in Taipei City. The sales revenue also increased by 2.87% and the tax revenue was increased yearly by 9.17%. The FDI and foreign companies' ratio stayed at 60%. The housing market has also shown steady growth. However, the imapct of the epidemic has plunged tourism. The occupancy rate has fallen to 34.89%.

2019 Q4

Taipei City’s number of company registrations and the total capital amount has presented stable progress. At the end of December 2019, the number of registered companies nationwide was 1590824. Among these companies, 179653 were registered in Taipei City. The sales revenue also increased by 2.37% and the tax revenue was increased yearly by 3.94%. The FDI and foreign companies’ ratio stayed at 60%. The persons’ in charge of these companies were mostly middle-aged and those companies with young entrepreneurs continuously progressed. The annual CPI growth rate of 0.84% remained stable and the unemployment rate stayed at 3.7%, indicating a stable labor market. The success of the housing market recovered and the overall construction presented an impressive performance. The tourism occupation rate was also 74.56% and was the highest in the country.

2019 Q3

Economic dynamics: The number of company registrations and total capital amount demonstrated stable growth. The sales revenue of companies grew 1.36%, indicating stable economic growth. Among the investment amount of overseas Chinese and foreigners, the number of foreign companies exceeded 60% standing on the top. The annual growth of net tax collected was 24.33%, and the increase of land value increment tax accounted for the majority. The average household dispensable income was 1.3793 million, a 2.59% increase compared to last year. For innovation, the percentage of sales revenue of the knowledge intensity service industry was raised to 68.51%, which is helpful for promoting overall economic benefit. As for startup businesses, the number of companies established by young entrepreneurs demonstrated net growth, in which the “wholesale and retail sale business”, “professional, science and technological services”, and “hotel and restaurant category” were the most popular. Meanwhile, the number of domestic and foreign young entrepreneurs also demonstrated net growth. Regarding price condition, the annual growth of the consumer price index was 0.92%. Among them, the increase in the food category was the biggest. As for construction, the prosperity of real estate gradually returned. The overall trade and registration both increased, with annual growth of 9.92%. Real estate market transactions recovered stably. With regard to tourism, the tourist accommodation rate continued to decline, while Japanese tourists accounted for the majority of overall tourists.

2019 Q2

Economic dynamics: The number of company registrations and total capital continued to present stable growth. The sales amount of companies grew 1.81%, and the economic performance has been remarkable. The investment amount of overseas Chinese and foreigners and the number of foreign companies newly established are all over 60% nationwide and leading the country. The tax amount collected increased 3.85% annually, with the increase of the deed tax being the largest. Innovation dynamics: The weight sales amount of the knowledge intensity services industry throughout the country increased 68.64%, which helps with overall economic promotion. Entrepreneur dynamics: For startup businesses, the number of companies established by young entrepreneurs demonstrated a net increase. The categories "wholesale and retail sale," “professional, science, and technological services,” and "accommodation, food, and beverage" categories were the most popular industries for startup business. Price dynamics: The annual growth of the consumer price index was 1.02%, with the food care category having the biggest increase. Labor dynamics: Employment figures have increased, and the unemployment rate remains at the same level. The overall labor market is stable. Construction dynamics: The prosperity of the housing market has recovered, and real estate transactions are hot. The price index of urban land continues to rise, and the price of residence, business, and industrial areas have all increased. The tourist occupancy rate remains stable, with most of them being Japanese tourists.

2019 Q1

Economic dynamics: The number of company registrations and total capital continues to present stable growth. The sales amount of companies grew 1.48%, and the economic performance has been remarkable. The investment amount of overseas Chinese and foreigners and the number of foreign companies newly established are all over 60% nationwide and rank at the top of the country. Innovation dynamics: the number of research centers remains at 47, and the number of headquarters has increased slightly to 84, leading the country. Regarding the sales amount of knowledge intensity services industry, the weight of Taipei City over the whole country decreased slightly to 64.07%. For startup businesses, the number of companies established by young entrepreneurs demonstrated a net increase. Regarding the industry distribution of startup companies, the percentage of “professional, science, and technological services” occupies almost 50%. The force of starting a business by domestic and foreign young entrepreneurs also demonstrated a net increase. Price dynamics: The annual growth of the consumer price index was 0.22%, with the medical care category having the biggest increase. Construction dynamics: The number of construction and usage licenses demonstrated a recession. The overall house market transactions faltered. Tourism dynamics: The tourist occupancy rate recovered to 74.56%, and most of them are Japanese tourists leading the overall tourism force.

2018 Q4

The number of company registrations and total capital amount demonstrated stable growth. The sales revenue of companies grew 6.68%, and the economic performance was remarkable. The investment amount of Overseas Chinese and foreigners accounted for 76.63%, and the percentage of newly established foreign companies exceeded 70%. The annual growth of net tax collection amount was 3.39, and the increase of land value tax was the biggest. Regarding operations, the number of company registrations and total capital amount demonstrated stable growth. The number of research centers increased to 46, and operation headquarters also increased slightly to 83; the weight increased 25.94%, the highest in the country. Regarding the sales revenue of the knowledge intensity service industry, the weight of Taipei City increased slightly to 64.84% over the country. The age distribution of startup business entrepreneurs was mainly young adults in currently existing companies. The net increase of companies established by young entrepreneurs slowed down. As for the industry distribution of startup companies, the percentage of “professional, science, and technological services” was almost 50%. The net increase of domestic young entrepreneurs slowed. The CPI annual growth rate was 0.98%, with the increase of transportation and communication being the biggest. The number of employed individuals was around 1.284 million, and about 49,000 people were unemployed. The unemployment rate was 3.7% and 1000 less than the previous year, a slight 0.1% decrease, showing a gradually improving labor market. The numbers of construction and usage licenses issued, as well as floor area, all continuously recovered. Overall real estate transactions continued to recover, and the performance in Beitou, Zhongshan, and Neihu Districts were the best. The raise of the land value index of national urban areas was maintained at 1% for six consecutive periods, and the raise in Taipei was 0.21%. The tourist occupancy rate recovered, with Japanese tourists accounting for the majority.

2018 Q3

The CPI annual growth rate was 1.24%, with the biggest increases being in transportation and communication. For construction, the number of construction licenses issued surpassed the number of usage licenses issued. The real estate situation became more conservative. Overall real estate transactions continued to recover, and the performance in Zhongshan, Beitou, and Nangang Districts were the best. The average household dispensable income was 1,344.5 thousands, a 1.8% increase compared to the previous year. The annual growth of net tax collection amount was 3.39%, and the increase of land value tax was the biggest. The number of company registrations and total capital amount demonstrated stable growth. The sales revenue of companies grew 7.56%, and the economic performance was remarkable. As for the tourism industry, the hotel occupancy rate of tourists recovered, mostly with Japanese tourists, as well as a slow increase in Chinese tourists. The investment amount of Overseas Chinese and foreigners increased US$2.21 billion compared with the same period in the previous year. Newly established foreign companies increased to 99, and the number of operational headquarters increased to 82. They both ranked at the top among all counties and cities. The number of research centers was maintained at 46, and the sales revenue of the knowledge intensity service industry decreased slightly. The popularity of starting companies by young entrepreneurships slowed down, and the number of companies established demonstrated stable growth. Regarding the industry distribution of startup companies, the major two industries were “wholesale and retail sale industry” and “professional, science, and technological services”, jointly accounting for almost 50%. The force of starting businesses by domestic young entrepreneurs slowed down, and the numbers of new and shutdown businesses fluctuated.