Economy - overview:
Taiwan has a dynamic capitalist economy that is driven largely by industrial manufacturing, and especially exports of electronics, machinery, and petrochemicals. This heavy dependence on exports exposes the economy to fluctuations in global demand. Taiwan's diplomatic isolation, low birth rate, rapidly aging population, and increasing competition from China and other Asia Pacific markets are other major long-term challenges.

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 of that year, 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 uncertain. President TSAI since taking office in May 2016 has promoted greater economic integration with South and Southeast Asia through the New Southbound Policy initiative and has also expressed interest in Taiwan joining the Trans-Pacific Partnership as well as bilateral trade deals with partners such as the US. These overtures have likely played a role in increasing Taiwan’s total exports, which rose 11% during the first half of 2017, buoyed by strong demand for semiconductors.

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 with many economies, including China and the US, 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 and has also secured greater market access for its investors on 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. President TSAI’s administration has made little progress on the domestic economic issues that loomed large when she was elected, including concerns about stagnant wages, high housing prices, youth unemployment, job security, and financial security in retirement. TSAI has made more progress on boosting trade with South and Southeast Asia, which may help insulate Taiwan’s economy from a fall in mainland demand should China’s growth slow in 2018.

GDP (purchasing power parity):
$1.189 trillion (2017 est.)
$1.156 trillion (2016 est.)
$1.14 trillion (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 22
[see also: GDP country ranks ]

GDP (official exchange rate):
$572.6 billion (2017 est.)
[see also: GDP (official exchange rate) country ranks ]

GDP - real growth rate:
2.9% (2017 est.)
1.4% (2016 est.)
0.8% (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 119
[see also: GDP - real growth rate country ranks ]

GDP - per capita (PPP):
$50,500 (2017 est.)
$49,100 (2016 est.)
$48,500 (2015 est.)
note: data are in 2017 dollars
country comparison to the world (CIA rank, may be based on non-current data): 28
[see also: GDP - per capita country ranks ]

Gross national saving:
34.9% of GDP (2017 est.)
35.5% of GDP (2016 est.)
36.3% of GDP (2015 est.)
country comparison to the world (CIA rank, may be based on non-current data): 17
[see also: Gross national saving country ranks ]

GDP - composition, by end use:
household consumption: 53% (2017 est.)
[see also: GDP - composition, by end use - household consumption country ranks ]
government consumption: 14.1% (2017 est.)
[see also: GDP - composition, by end use - government consumption country ranks ]
investment in fixed capital: 20.5% (2017 est.)
[see also: GDP - composition, by end use - investment in fixed capital country ranks ]
investment in inventories: -0.2% (2017 est.)
[see also: GDP - composition, by end use - investment in inventories country ranks ]
exports of goods and services: 65.2% (2017 est.)
[see also: GDP - composition, by end use - exports of goods and services country ranks ]
imports of goods and services: -52.6% (2017 est.)
[see also: GDP - composition, by end use - imports of goods and services country ranks ]

GDP - composition, by sector of origin:
agriculture: 1.8% (2017 est.)
[see also: GDP - composition, by sector of origin - agriculture country ranks ]
industry: 36% (2017 est.)
[see also: GDP - composition, by sector of origin - industry country ranks ]
services: 62.1% (2017 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:
3.9% (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 79
[see also: Industrial production growth rate country ranks ]

Labor force:
11.78 million (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 51
[see also: Labor force country ranks ]

Labor force - by occupation:
agriculture: 4.9%
[see also: Labor force - by occupation - agriculture country ranks ]
industry: 35.9%
[see also: Labor force - by occupation - industry country ranks ]
services: 59.2% (2016 est.)
[see also: Labor force - by occupation - services country ranks ]

Unemployment rate:
3.8% (2017 est.)
3.9% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 47
[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% (2010)
[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 (CIA rank, may be based on non-current data): 112
[see also: Distribution of family income - Gini index country ranks ]

Budget:
revenues: 91.62 billion (2017 est.)
[see also: Budget - revenues country ranks ]
expenditures: 92.03 billion (2017 est.)
[see also: Budget - expenditures country ranks ]

Taxes and other revenues:
16% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 184
[see also: Taxes and other revenues country ranks ]

Budget surplus (+) or deficit (-):
-0.1% (of GDP) (2017 est.)
country comparison to the world (CIA rank, may be based on non-current data): 50
[see also: Budget surplus (+) or deficit (-) country ranks ]

Public debt:
35.7% of GDP (2017 est.)
36.2% of GDP (2016 est.)
note: data for central government
country comparison to the world (CIA rank, may be based on non-current data): 149
[see also: Public debt country ranks ]

Fiscal year:
calendar year

Inflation rate (consumer prices):
1.1% (2017 est.)
1% (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 61
[see also: Inflation rate (consumer prices) country ranks ]

Central bank discount rate:
1.38% (31 December 2016)
1.63% (31 December 2015)
country comparison to the world (CIA rank, may be based on non-current data): 129
[see also: Central bank discount rate country ranks ]

Commercial bank prime lending rate:
2.63% (31 December 2017 est.)
2.63% (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 178
[see also: Commercial bank prime lending rate country ranks ]

Stock of narrow money:
$560.9 billion (31 December 2017 est.)
$501.2 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 11
[see also: Stock of narrow money country ranks ]

Stock of broad money:
$560.9 billion (31 December 2017 est.)
$501.2 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 11
[see also: Stock of broad money country ranks ]

Stock of domestic credit:
$880.8 billion (31 December 2017 est.)
$778.3 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 18
[see also: Stock of domestic credit country ranks ]

Market value of publicly traded shares:
$851.2 billion (31 December 2016)
$742.5 billion (31 December 2015)
$848.3 billion (31 December 2014)
country comparison to the world (CIA rank, may be based on non-current data): 13
[see also: Market value of publicly traded shares country ranks ]

Current account balance:
$82.88 billion (2017 est.)
$72.78 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 5
[see also: Current account balance country ranks ]

Exports:
$349.8 billion (2017 est.)
$310.4 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 15
[see also: Exports country ranks ]

Exports - partners:
China 28.8%, Hong Kong 12.4%, US 11.8%, Japan 6.9%, Singapore 5.2%, South Korea 4.8% (2018)

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

Imports:
$259 billion (2017 est.)
$239.3 billion (2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 19
[see also: Imports country ranks ]

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

Imports - partners:
China 19.3%, Japan 16.2%, ASEAN 12%, US 11.7%, EU 10%, South Korea 6.5% (2017)

Reserves of foreign exchange and gold:
$456.7 billion (31 December 2017 est.)
$439 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 5
[see also: Reserves of foreign exchange and gold country ranks ]

Debt - external:
$181.9 billion (31 December 2017 est.)
$172.2 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 38
[see also: Debt - external country ranks ]

Stock of direct foreign investment - at home:
$78.3 billion (31 December 2017 est.)
$80.68 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 51
[see also: Stock of direct foreign investment - at home country ranks ]

Stock of direct foreign investment - abroad:
$332.4 billion (31 December 2017 est.)
$354 billion (31 December 2016 est.)
country comparison to the world (CIA rank, may be based on non-current data): 22
[see also: Stock of direct foreign investment - abroad country ranks ]

Exchange rates:
New Taiwan dollars (TWD) per US dollar -
30.68 (2017 est.)
32.325 (2016 est.)
32.325 (2015 est.)
31.911 (2014 est.)
30.363 (2013 est.)