Analysis of Taiwan Economic Situation

2021 Q1

Benefited from the mass production of vaccines, the increase in the rate of injection in various countries, the rebound of oil prices, the increase in raw material prices, and the recovery of the global economy, our country's important economic indicators have continued to shine. Especially the total export value reached a new high, reaching 97.944 billion US dollars; the order amount was the second highest in history, reaching 148.968 billion US dollars; the industrial production index was 122.72, along with the retail and catering industry turnover, both, respectively reached the second highest in history; hence, the wholesale, was the second highest in history. It amounts to 4 trillion 29.254 billion yuan. Obviously, the domestic economy is still active, coupled with the continuous surge in the stock market, and the continuous growth of Chinese consumption in Taiwan, leading to the largest increase in GDP in the first quarter of 2021 in a decade, reaching 8.92%.

2020 Q4

In 2020, the global economy was sluggish due to the impact of the COVID pandemic and the US-China trade war. However, it had unexpectedly promoted the rise of the stay-at-home economy such as distance learning and remote working, the strong demand for 5G deployment will affect the booming demand of the tech-related industry. Even though border blockades of various countries had caused a sharp drop in the number of visitors to Taiwan, the defense epidemic of Taiwan had achieved remarkable results, people and economy were as usual, the competitive advantage of the companies in Taiwan, and the massive wave of Taiwanese firms to expand the production capability, which had promoted the trade performance and offset the adverse impact of the general environment. The annual GDP grew by 3.11%.

2020 Q3

When the world is shrouded in the gloom of the new crown pneumonia epidemic and the US-China trade war, the competitiveness of our country due to manufacturers' leading advantages, Taiwanese businessmen returning to expand production capacity, government implementation of revitalization measures, industry promotion strategies have worked, and the defense epidemic of Taiwan has achieved remarkable results. People and economy are as usual, thus offsetting the adverse impact of the general environment, the economic performance in the third quarter came to the fore, with GDP growth of 3.92%. In addition to the increased consumption of Chinese in Taiwan, which boosted the performance of commercial operations, the ban on chip trade under the US-China trade war has also improved the performance of related products in Taiwan, especially in production and foreign trade. However, whether the economic performance of Taiwan foreign trade can be sustained after the ban has passed is worthy of attention.

2020 Q2

Affected by factors such as the COVID-19 pandemic, falling prices of raw material, and the US-China trade war, the global economy has continued to slump. However, due to the remarkable success of pandemic control within, all industrial activities remain as usual.Furthermore, the strong competitive advantages of Taiwanese manufacturers, the booming business opportunities and the increasing demand for emerging technology applications such as 5G communications; and the continuous increase in production capacity of Taiwanese businessmen…etc. All the factors cause this offset of environmental shocks, therefore, the GDP in the second quarter fell only slightly by 0.58%. In addition to changing people's consumption habits, the pandemic has also prompted businesses to expand e-commerce. Under current circumstances, the expansion of channels will continue to create more business opportunities for businesses in post-pandemic era.

2020 Q1

Due to the COVID-19 pandemic, each country have implemented epidemic control, which has led to the decline of global production and consumption, raw material prices slumped during the global recession. Fortunately, our country has achieved remarkable results in defensing epidemic. Domestic production actutivies are as usual. In addtion, the rise of long-distance business opportunities, the increase of the emerging technology like 5G communications have enlarged the export of electronic components, ICT and audiovisual products. It partially reduced the impact of this wave of global economic contraction on our country.

2019 Q4

As impacted by the weak global economy and the US and China trade conflict, our external trade was retrenched continuously in 2019. The foreign sales order was decreased by 5.33% and the total export value was 1.4%, which decreased yearly. Industrial productivity was also insufficient, with an annual decline of 5.33%. The demand for purchase was weak regarding the wholesale industry while eCommerce and restaurant expansion moderated the decline of the retail sales industry. The annual turnover regarding overall wholesale, retail sales, food, and beverages decreased by 0.51%. However, the labor market was stabilizing, with an unemployment rate of 3.73%. The employee turnover rate was 2.29% and the consumer price was stable while the financial market was active, presenting a CPI increase of 0.56% and an annual M2 growth rate of 4.53%. Overall, the domestic economy was weak and the economic growth rate was 2.71%.

2019 Q3

The economic growth rate was 2.99% in Q3 2019, and the overall economic performance showed stable growth. Due to US and China trade friction, global prosperity is slowing down. Furthermore, international raw material prices were mostly declining, with physical commodity and service output growth representing slow growth, while private consumption grew 2.28%. The amount of overseas sales order of US126.1 billion indicated a 5.4% annual decrease; the industrial production index was 113.15, representing a 1.77% annual growth on the rebound. The external trade amount demonstrated negative growth, and the 0.37% annual decrease of the overall wholesale, retail sales, and restaurant turnover. The labor participation rate was 59.29%, and the unemployment rate was 3.84%, maintaining the stability of the overall labor market. CPI annual growth was 0.41%, with the price remaining stable while the financial transactions were hot.

2019 Q2

The economic growth rate was 2.40% in Q2 in 2019 and the overall economic performance was in stable growth. Due to the trade tensions between the US and China, while global prosperity has decreased. However, with production moving back home and the order transfer effects, the export of integrated circuits has improved. Meanwhile, the products and services export grew by 4.13% with a recovery shown in the increase in the scale of growth while the private consumption grew by 1.55%. The number of overseas orders amounted to US$114.88 billion with a 4.7% decrease, annually. The industrial production index was 106.58 with a 0.58% YOY decrease, while the scale of the decrease has been reduced. The external trade amount has grown with the export amount of US$81.906 billion, still presenting a negative amount. The annual decrease in the overall turnover of wholesale, retail sale, and restaurant sale was 1.4% and the decline was reduced. With the labor participation rate at 59.09% and unemployment at 3.69%, the overall labor market remains stable. The annual growth of CPI was 0.82%, representing a stable consumer price and active financial trades.

2019 Q1

The economic growth rate was 1.71% in Q1 2019, and the overall economic performance grew stably. Since global prosperity has slowed, the purchase of mobile communication products has decreased, the semi-conductor is under inventory adjustment, and the commodities and service output growth was only 0.97%, presenting a slower increase, while the consumption grew 1.32%. The overseas order amount was US$107.98 billion, which was an annual decrease of 8.4%; the industrial production index was 99.07, an annual decrease of 4.58%. Positive growth for 10 consecutive quarters ended. The external trade amount showed negative growth with an export amount of US$76.364 billion. The overall turnover of wholesale, retail sale, and restaurant decreased 1.12% annually, and purchasing slowed. The labor participation rate was 59.08%, unemployment rate was 3.68%, and the overall labor market has remained stable. The annual growth of CPI was 0.33%, the price has remained stable, and financial transactions were active.

2018 Q4

The annual economic growth rate was 2.63% in 2018, and the overall economy showed stable growth. Due to a slowdown in global prosperity and smart phone sales being less than expected, the products and services export grew 1.29%, and the increase was slow. Private consumption grew 1.67%. The export order amount was US$511.82 billion, with annual growth of 3.9%. The industrial production index was 108.33, with annual growth of 3.65%, a new record high. The trade amount maintained stable growth, and the annual export amount was US$336.05 billion. The annual growth regarding the turnover of wholesale, retail sale, and restaurant industries was 3.49%, which was also a new record high. The labor force participation rate was 58.99%, while unemployment was 3.71%, indicating a continuously stable labor market. The 1.35% annual growth of CPI represented a stable price and slow financial transactions.

2018 Q3

Compared with the same period in the previous year, the economic growth rate in 2018 Q3 was 2.27% according to preliminary calculations. Benefitting from stable global economic growth, continuously active emerging technology applications, and high crude oil prices, the export of products and services grew 1.21%. The export order amount was US$133.33 billion, with an annual growth 6.31%, a new record high for that period. The industrial production index was 111.12, with annual growth of 2.39% and slower increase. The trade amount maintained stable growth, and the annual export growth was 3.07 and 13.99% growth in terms of imports. The annual growth regarding the turnover of wholesale, retail sale, and restaurant industries was 3.56%. The employment rate increased 0.73%, while the unemployment rate of 3.81% showed stable and mild improvement. The annual growth of the consumer price index was 1.67%, representing a stable price, and the total monetary amount appeared as a gold cross.