Taiwan

Earlier exit from the crisis likely, but challenges ahead

A2

MEDIUM RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD610.78bn (IMF 2019)
Population 23.76mn, (IMF 2019)
Form of state Multiparty Democracy
Head of government Tsai Ing-wen (President)
Next elections January 2024, presidential and legislative
  • Functioning, stable democracy with robust institutions
  • Good record of sound economic management, pro-business environment, well-trained workforce
  • Demonstrated economic flexibility, enabling rapid shifts along the value-added scale
  • High domestic savings and investment
  • Very strong external liquidity
  • Increasingly tense (geo)political relationship with mainland China
  • Highly dependent on demand from mainland China, Hong Kong and the U.S. (export-dependent economy)
  • Openness of the economy leaves it vulnerable to external demand shocks
  • Heavy concentration in the IT/electronics sector

Trade structure by destination/origin

(% of total)

Exports Rank Imports
China 25%
1
19% China
China, Hong Kong SAR 14%
2
17% Japan
United States 12%
3
12% United States
Japan 7%
4
6% Korea, Republic of
Singapore 6%
5
4% Germany

Trade structure by product

(% of total)

Exports Rank Imports
Electrical machinery and apparatus 34%
1
19% Electrical machinery and apparatus
Telecom and sound recording apparatus 5%
2
11% Petroleum products and related materials
Professionnal and scientific instuments 5%
3
6% Specialised machinery
Miscellaneous manufactured articles 5%
4
4% Professional and scientific instruments
Plastics in primary forms 4%
5
4% Organic chemicals

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Country Risk Analyst:

Françoise Huang

francoise.huang@eulerhermes.com

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