Economy - overview:
Taiwan has a dynamic capitalist economy with gradually decreasing government guidance on investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as of the conclusion of President MA's second and final term in May 2016. MA portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks, and has also expressed interest in Taiwan joining the Trans-Pacific Partnership.Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese Renminbi (RMB) and the New Taiwan Dollar across the Strait, which has helped Taiwan develop into a local RMB hub.Closer economic links with the mainland bring opportunities for Taiwan’s economy but also pose challenges as political differences remain unresolved and China’s economic growth is slowing. Domestic economic issues loomed large in public debate ahead of the 16 January 2016 presidential and legislative elections, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement.

GDP (purchasing power parity):
$1.125 trillion (2016 est.) $1.115 trillion (2015 est.) $1.107 trillion (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 22
[see also: GDP country ranks ]

GDP (official exchange rate):
$519.1 billion (2015 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
1% (2016 est.) 0.6% (2015 est.) 3.9% (2014 est.)
country comparison to the world: 178
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$47,800 (2016 est.) $47,400 (2015 est.) $47,300 (2014 est.)
note: data are in 2016 dollars
country comparison to the world: 30
[see also: GDP - per capita country ranks ]

Gross national saving:
35.7% of GDP (2016 est.) 36.5% of GDP (2015 est.) 34.5% of GDP (2014 est.)
country comparison to the world: 11
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 52.7%
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 14.3%
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 20.6%
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: 0.1%
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 62.2%
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -49.9% (2016 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1.8%
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 36.1%
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 62.1% (2016 est.)
[see also: GDP - composition, by sector of origin - services country ranks ]

Agriculture - products:
rice, vegetables, fruit, tea, flowers; pigs, poultry; fish

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

Industrial production growth rate:
0.5% (2016 est.)
country comparison to the world: 168
[see also: Industrial production growth rate country ranks ]

Labor force:
11.68 million (2016 est.)
country comparison to the world: 51
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 5%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 36%
[see also: Labor force - by occupation - industry country ranks ]
services: 59% (2015 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.9% (2016 est.) 3.8% (2015 est.)
country comparison to the world: 32
[see also: Unemployment rate country ranks ]

Population below poverty line:
1.5% (2012 est.)
[see also: Population below poverty line country ranks ]

Household income or consumption by percentage share:
lowest 10%: 6.4%
[see also: Household income or consumption by percentage share - lowest 10% country ranks ]
highest 10%: 40.3% (2010)
[see also: Household income or consumption by percentage share - highest 10% country ranks ]

Distribution of family income - Gini index:
33.6 (2014) 32.6 (2000)
country comparison to the world: 102
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: $80.8 billion
[see also: Budget revenues country ranks ]
expenditures: $83.95 billion (2016 est.)
[see also: Budget expenditures country ranks ]

Taxes and other revenues:
15.6% of GDP (2016 est.)
country comparison to the world: 185
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-0.6% of GDP (2016 est.)
country comparison to the world: 43
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
32.7% of GDP (2016 est.) 32.7% of GDP (2015 est.)
note: data for central government
country comparison to the world: 139
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.3% (2016 est.) -0.3% (2015 est.)
country comparison to the world: 85
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
1.63% (31 December 2015) 1.88% (31 December 2014)
country comparison to the world: 119
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
2.7% (31 December 2016 est.) 2.83% (31 December 2015 est.)
country comparison to the world: 169
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$477.8 billion (31 December 2016 est.) $462.5 billion (31 December 2015 est.)
country comparison to the world: 12
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$1.246 trillion (31 December 2016 est.) $1.206 trillion (31 December 2015 est.)
country comparison to the world: 16
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$743.5 billion (31 December 2016 est.) $734 billion (31 December 2015 est.)
country comparison to the world: 19
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$741.1 billion (31 December 2015) $847.8 billion (31 December 2014) $818.7 billion (31 December 2013)
country comparison to the world: 15
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$77.9 billion (2016 est.) $76.17 billion (2015 est.)
country comparison to the world: 6
[see also: Current account balance country ranks ]

Exports:
$314.8 billion (2016 est.) $335.5 billion (2015 est.)
country comparison to the world: 16
[see also: Exports country ranks ]

Exports - commodities:
semiconductors, petrochemicals, automobile/auto parts, ships, wireless communication equipment, flat display displays, steel, electronics, plastics, computers

Exports - partners:
China 27.1%, Hong Kong 13.2%, US 10.3%, Japan 6.4%, Singapore 4.4% (2012 est.)

Imports:
$248.7 billion (2016 est.) $262.9 billion (2015 est.)
country comparison to the world: 18
[see also: Imports country ranks ]

Imports - commodities:
oil/petroleum, semiconductors, natural gas, coal, steel, computers, wireless communication equipment, automobiles, fine chemicals, textiles

Imports - partners:
Japan 17.6%, China 16.1%, US 9.5% (2012 est.)

Reserves of foreign exchange and gold:
$456.9 billion (31 December 2016 est.) $430.7 billion (31 December 2015 est.)
country comparison to the world: 6
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$155.4 billion (31 December 2016 est.) $159 billion (31 December 2015 est.)
country comparison to the world: 39
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$74.64 billion (31 December 2016 est.) $72.34 billion (31 December 2015 est.)
country comparison to the world: 51
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$346.9 billion (31 December 2016 est.) $336.1 billion (31 December 2015 est.)
country comparison to the world: 21
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
New Taiwan dollars (TWD) per US dollar - 32.85 (2016 est.) 31.911 (2015 est.) 31.911 (2014 est.) 30.363 (2013 est.) 29.62 (2012 est.)