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Taiwan Taiwan

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Taiwan – Quick View
ECR score80.04 (Mar 2011)
ECR rank18 (Mar 2011)
Economic
GDP 2010 pUSD 431.72 billion
GNI per capita PPP 2010USD 4,432 million
FDI inflow 2008USD 8.23 billion
Inflation 20100.96%
Central bank assets (Jan – Nov)USD 525,9201.59 million
Unemployment rate 20095.85%
Government deficit 2009USD 4.84 billion
Tax revenue 2010USD 51,442.33 million
Political
Government typeMultiparty democracy
Recent political crisisNA
Economic freedom score25th
Freedom of information score48th
Structural
Corruption perception index33rd
Birth rate8.3%
Population balanceUnder 14 – 16.3%
Population balanceOver 65 – 10.6%
Life expectancyMale 76.7 years
Life expectancyFemale 81.3 years
Mortality rate4.1 per `000
Literacy rateNA
Internet access70.1%

[Top] Economic Overview

Taiwan’s economic depends mainly on tourism sector. More than 70% of the total revenue is generated from this sector. Tuna fishing is also a major revenue generating sector for economy. The country is also the major contract computer chip manufacturing country.

(Source: economywatch)

GDP and GDP Growth Rate

 



 

(Source: stat.gov.tw)   

The country’s GDP in 2009 was NTD 12,477,182 million, compared to NTD 12,620,150 in 2008. The GDP declined by 1.24% from the previous year.

In 2010, according to preliminary estimates GDP at current prices is NTD 13,614.415 billion and economic growth rate 10.82%.

The nation’s Gross National Product (GNP) was USD 4,432 million for the year 2010 as compared to USD 3,899 million for the year 2008. However, GNP per capita for the year 2010 was NTD 19,155 which is increased by 11.79% as compared to previous year.

(Source: stat.gov.tw)

GDP per capita at PPP

GDP per capita at PPP was declined by 2230.29 USD from the previous year. The compounded annual growth rate from 2005 to 2009 is 0.03%.

 

(Source: econstats)    

Income Tax Rate

Income tax on Individual incomes in Taiwan is taxed progressively at 5% to 40%.

 

Income Tax Rates in for an Individual in 2010

Income (NTD)

Tax Rate

0-500,000

5%

500,001-1,130,000

12%

1,130,001-2,260,000

20%

2,260,001-4,230,000

30%

4,230,001 and over

40%

 (Source: investtaiwan.nat.gov.tw)

 

Corporate Tax Rate

Standard corporate tax in Taiwan is 17%.

(Source: taxrates)


Tax contribution

Total tax rate (% profit)

Corporate income tax

18.9

Pension contribution -RAP

6.8

Fuel tax

0.1

Tax on interest

0.3

(Source: doingbusiness.org)

Inflation rate


(Source:cbc.gov.tw, cbc.gov.tw)

In the year 2009, there was a decline in inflation rate because of the decrease in international commodity prices. The consumer prices marginally increased to 0.96% in 2010 as compared to previous year.

 

Foreign Direct Investment

The Foreign Direct Investment for the year 2008 was USD 8.23 billion. In Taiwan, EU is major source of foreign direct investment.

(Source: europa.eu, Forbes)

Banking sector assets

 

Banking sector assets (NTD million)

 

2005

2006

2007

2008

2009

2010 (till Nov.)

Central bank

9,094,433

9,449,985

9,672,904

10,355,000

12,662,063

13,757,604

Deposit Money Banks

25,671,559

26,601,283

27,238,657

29,096,991

30,644,439

31,751,728

Monetary institutions

29,653,996

30,890,226

31,615,373

33,655,078

35,241,318

36,178,086

Major financial institutions

30,365,629

31,927,680

32,769,344

34,939,362

36,718,876

37,730,866

 In 2010, the banking sector assets increased to NTD 166,599,960 million. The year on year growth of banking sector assets was increased by 3.98%. In domestic banks, the year on year growth was 5.42% and the foreign banks assets decreased by 2.31% from the previous year.

Non-performing loan Ratios

Non-performing Loan Ratios of Domestic Banks

Year

Ratio

2010( November)

0.70

2009

1.15

2008

1.54

2007

1.84

2006

2.13

2005

2.24

2004

3.80

2003

6.08

2002

8.85

The Non-performing loan ratio of domestic banks for the year 2010 November was 0.70.

(Source: cbc.gov.tw)

[Top] Financial Indicators & Government Financial

Consumer Price Index

Taiwan Consumer Price Index

Base rate 2006=100

(Source: stat.gov.tw)

In the year 2009, there is a decline of 0.87% from the previous year this indicates that the decrease in prices of consumer goods. In addition, the international oil prices, and prices for fruits and vegetables was declined.

Wholesale price index

Taiwan Wholesale Price Index

(Source: stat.gov.tw)

In 2009, there was an 8.74% declined in wholesale price index because of decrease in the international commodity prices. In the year 2010, there is an increase to 5.46%.

Interest rates:

The country’s interest rates are as:

Interest rates (%)

 

1- month deposit rate

1- year deposit rate

Discount rate

2005

1.5

1.99

2.25

2006

1.71

2.2

2.75

2007

2.09

2.62

3.375

2008

0.91

1.42

2

2009

0.47

0.89

1.25

2010

0.67

1.13

1.5

(Source: cbc.gov.tw)

Government Expenditure

Taiwan Government Expenditure (%)



(Source: gio.gov.tw)

The total government expenditure was USD 51.74 billion in 2009. The major expenditure incurred was for education, science and culture (19%), followed by social welfare (18.7%) defence (17%), and economic development (14.3%). The remaining expenditure was on general administration, pensions and humanitarian aid, debt obligations, general subsidies and community development and environmental protection.

Money Supply (Currency in Circulation)

Taiwan Money Supply

(Source: cbc.gov.tw)

M1 A, which includes currency held by public, checking accounts and passbook deposits, for the year 2010 was NTD 3,993,624 millions. M1 B, which includes M1 A and passbook deposits, was NTD 10,776,627 million for 2010. M2 was NTD 30,074,191 million in 2010 which includes M1 B and quasi-money.

At the end of 2009, NTD 1,000 notes formed 79.52% of the total value of currency in circulation, whereas, NTD 500 and NTD 100 notes accounted for 4.37% and 5.53%, respectively.

(Source: cbc.gov.tw)

Official exchange rate

The country’s official exchange rate for the year 2010 was NTD 31.3479 per USD.Taiwan Official Exchange Rate

(Source: ntat.gov.tw)

Government Financial well-being

Fiscal balance

In 2009, the country recorded fiscal deficit of USD 4.84 billion.

(Source: gio.gov.tw)

Total Revenue

Taiwan Total Revenue

In the year 2009, the total government revenue was USD 46.90 billion. The major contribution to the revenue was from government taxes which accounted 68% of total revenue.

(Source: gio.gov.tw)

Tax Revenue

Taiwan Total Tax Revenue

(Source: mof.gov.tw)

In 2010, the tax revenue was NTD 1,622,244 million which were increased by 6% as compared to previous year.

Balance of Payment

Balance of Payment (Unit: USD million)

 

2009

2008

Current Account

42,572

25,122

Capital Account

-96

-334

Financial Account

13,980

-1,753

Net Errors And Omissions

-2,330

3,239

Reserves and Related Items

-54,126

-26,274

 

(Source: cbc.gov.tw)

The current account showed increase of 69.46% from the previous year. The capital account showed a deficit of USD 96 million, compared to a deficit of USD 334 million in 2008, because of decline in acquisition of non-financial assets.

[Top] Labour Force and Employment Overview

Labour force

 

Taiwan Labour Force

(Source: stat.gov.tw)

The country had a total labour force of 10,917,000 in 2009, increasing 0.6% compared to the previous year.

Labour force participation rate

 

Taiwan Labour force participation rate

(Source: stat.gov.tw)

In 2009, the labour participation rate for males was 66.4% and for females it was 49.6%. The total participation rate was 57.9%.

(Source: stat.gov.tw)

In 2009, a total of 10,279,000 people in the country were employed. This included 4,502 females, contributing 43.8% to the total employment.

Unemployment Rate


Labour Unemployment rate in Taiwan (%)

Year

Total

Male

Female

2005

4.13

4.31

3.88

2006

3.91

4.05

3.71

2007

3.91

4.05

3.72

2008

4.14

4.39

3.83

2009

5.85

6.53

4.96

 
(Source: stat.gov.tw)
In 2009, the unemployment rate increased sharply, reflecting the after effects of the economic crisis. The number of unemployed in 2009 increased by 42% compared to the previous year.
 

Employment in agriculture

The employment in agriculture for 2010 was 550,000, increasing by 1.29% from the previous year.

Taiwan Employment in Agriculture

(Source:stat.gov.tw)

Employment in industries

In 2010, the number of people employed in manufacturing increased by 2.14% compared to 2009.

Taiwan Employment in Industries

(Source: stat.gov.tw)

Employment in service

The number of persons employed in the service industry has been continuously increasing. There were 6,169,000 persons in the services industry compared to 5,857,000 in 2006.

Taiwan Employment in Services

(Source: stat.gov.tw)

Minimum wage

The fundamental wages of employees in Taiwan was NTD 17,280 per month in 2009, remaining unchanged since 2007.

The following are sector wise average monthly earning of employees for 2009:

Sector

Monthly earning of employees

Non-agricultural sector

42,176

Industry sector

40,032

Service sector

43,914

 (Source: stat.gov.tw)

[Top] Political Stability

Government stability

Government in Taiwan includes the presidency and five major branches, or Yuan. By end of 2010, the country had five special municipalities, 14 counties and three county-level municipalities.

The president is the head of the state and is the country’s representative for matters concerning international relations. He and the vice-president are elected for a term of four years.

The government includes eight ministries and 29 commissions and agencies. The heads of these ministries and agencies form the Executive Yuan Council or the Cabinet. They are elected by the Premier, who also heads the Executive Yuan Council.

Currently, Ma Ying-jeou is the president of Nationalist Party, and was elected in 2008. The major political parties in Taiwan include:

  • The Kuomintang or the Nationalist Party
  • Democratic Progressive Party (DPP)
  • Non-Partisan Solidarity Union
  • The People First Party
  • The Taiwan Solidarity Union

(Source: gio.gov.tw, BBC)

Regulatory environment

The government in Taiwan is based on a multi-party democracy framework, which means that the head of the state is the representative of the people, chosen by the people and is bound to govern by the constitutional law.

 

 

Taiwan Economic Freedom Indices

(Source: heritage.org)

Taiwan’s economic freedom score is 70.8, making its economy the 25th freest in the 2011 Index. Taiwan is ranked 7th of 41 countries in the Asia-Pacific region. The country’s score is better than the world and regional average.  Furthermore, its score is 0.4 points higher than the previous year, when it was ranked 27th globally.

 

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Taiwan is ranked 33rd on the index indicating relatively low levels of corruption in public departments.

The country’s CPI ranking improved from 2009, when it was ranked 37th with a score of 5.6, indicating a slight decrease in the corruption levels.

(Source: transparency.org)

Freedom of information

Media in Taiwan is among the freest in Asia. Many of the newspaper agencies are privately owed.

In 2005, the government adopted the Freedom of Information Law. The Freedom of Government Information Law allows government data including treaties, diplomatic documents, laws, administrative plans and reports, and budgets  made available to the public on request.

(Source: law.moj.gov.tw)

In 2010, the ban on government ownership of shares in broadcast media firms was relaxed, allowing an indirect 10% stake in these companies. Earlier, the government, political parties and the military were totally banned from holding shares in media broadcasting firms.

(Source: taiwanhoy.nat.gov.tw)

Taiwan, with a score of 14.5, is ranked 48th on the World Press Freedom Index 2010.

(Source: rsf.org)

Newspapers

As of June 2010, Taiwan had more than 2,000 registered newspapers. Major newspapers include:

  • Central Daily News
  • United Daily News
  • China Times
  • The Liberty Times
  • Taiwan News
  • Taipei Times
  • The China Post

(Source: BBC)

Judicial system

In Taiwan, Judicial Yuan is the highest judicial body and supervises the judicial administration of:

  • Supreme Court
  • Supreme Administrative Court
  •  Institute for Judicial Professionals of the Judicial Yuan
  • Commission on the Disciplinary Sanctions of Functionaries
  • Taiwan High Court
  • Taipei High Administrative Court
  • Taichung High Administrative Court
  • Kaohsiung Administrative High Court
  •  Intellectual Property Court
  • Fuchien High Court Kinmen Branch Court
  •  Fuchien Kinmen District Court
  • Fuchien Lienchiang District Court

The Supreme Court is the highest court of justice. It is divided into 8 civil divisions and 12 criminal divisions. The country has 20 district courts which are divided into civil, criminal, and summary divisions. There is also a high court which looks after civil and criminal cases.

The Judicial Yuan has fifteen justices, including the president and the vice president of the Judicial Yuan. The president of the Judicial Yuan is responsible for administrative affairs. These justices are nominated and appointed by the country’s President. The consent of the Legislative Yuan is required for their appointment.

(Source: judicial.gov.tw)

[Top] Demographic Overview

The total population of Taiwan at the end of 2010 was 23,162,123, increasing at a rate of about 0.18% over the previous year. Of the total population, 11,635,225 were males and 11,526,898 were females.

(Source: stat.gov, stat.gov.tw)

Taiwan Population by Gender

Mortality Rate

The country recorded an infant mortality rate (per 1,000 live births) of 4.1 in 2009. The infant mortality rate has been on the decrease since 2007.

 Taiwan Infant Mortality Rate

 

Average life expectancy

The average life expectancy in 2009 was 79 years. The life expectancy for females was 81.3 years and for males was 76.7 years. Furthermore, the median age of the population was 36.8 years in 2009.

(Source: stat.gov.tw)

In 2009, the majority of the population, about 73% were aged 15 to 64 years. 16.3% of the population was below 14 years of age and 10.6% were aged 65 years and above.

Gender balance


Taiwan Gender Balance

(Source: stat.gov)

The country’s gender ratio is almost balanced with 101.3 males for every 100 females. However, the gender ratio has been on the decrease since 2003, when it was recorded at 103.8 males per 100 females.

In 2009, the immigration rate was 79.4% and the emigration rate was 77.9%

Racial/ethnic environment

The major ethnic groups in Taiwan include Holo, Hakka and other indigenous groups comprising Amis, Atayal, Bunun, Kavalan, Paiwan, Puyuma, Rukai, Saisiyat, Sakizaya, Sediq, Thao, Truku, Tsou and Yami.

(Source: gio.gov.tw)

Poverty and inequality

In 2009, 1.11% of the total population of the country was categorised as under the low income group. The number of people per 1,000 populations in the low income group was 256 in 2009. The number of households in the low income group has increased by more than 27% since 2003.

(Source: stat.gov.tw)

[Top] Soft Infrastructure

Education in Taiwan is free and includes nine years of compulsory education. The majority of the elementary and junior high schools are public.  Taiwan had 8,060 schools in 2009, of which 73.1% were government schools.

In Taiwan, the educational system includes:

  • Preschool Education
  • Compulsory Education (Elementary education and  junior high school education)
  • Senior Secondary Education
  • Junior Secondary Education
  • Post- Secondary education
  • Graduate education
  • Supplementary Education and Special education.

(Source: saec.edu.tw)

Expenditure on educational institutions as % of GDP

Taiwan Government expenditure on education

(Source: stat.gov.tw)

Education, science and culture together were the major beneficiaries of government expenditure in 2009, accounting for 19% of the total expenditure of USD 51.74 billion. Expenditure on educational institutes was 4.4% of the country’s GDP in 2009.

 

Healthcare resources

The country’s compulsory healthcare system known as the National Health Insurance (NHI) program was launched in 1995.

The medical facilities in the country included 514 hospitals and 19,792 clinics. The country had a total of 156,740 beds, or 67.79 beds per 10,000 people and 244,000 medical professionals.

In 2009, cancer was the leading cause of death. Specifically, in 2009, there were about 40,000 deaths related to cancer, or about 110 deaths per day.

Taiwan’s healthcare expenditure in 2008 was 6.4% of the GDP.

(Source:gio.gov.tw)

[Top] Hard Infrastructure

Mass public transit - the mass public transport in the country includes roads (buses and cabs), railways, and airways.

Ports:

The major ports in Taiwan include Hualien Port, Port of Kaohsiung, Port of Keelung, Mailiao Harbor, Port of Taichung, and Port of Taipei.

(Source: world port source)

Airports

The country has two major international airports which are Taiwan Taoyuan International Airport and Kaohsiung International Airport.

Town

Airport name

Runway length

Chiayi

Chiayi Aero

10000 ft

Chin Men

Shang Yi

9800 ft

Ching Chuan Kang

Ching Chuan Kang Ab

12000 ft

Green I

Green I

3300 ft

Hengchun

Hengchun

3500 ft

Hinchey

Hsinchu Aero

12000 ft

Hualien

Hualien

9000 ft

Kangshan

Kangshan

7500 ft

Kaohsiung

Kaohsiung Intl

10300 ft

Lan Yu I

Lan Yu I

4500 ft

Lungtang

Lungtang

3200 ft

Makung

Makung Ab

6500 ft

Matsu

Matsu

2900 ft

Pingtung

Pingtung North

8000 ft

Pingtung

Pingtung South

7800 ft

Taichung

Taichung Aero

5300 ft

Tainan

Tainan Aero

10000 ft

Taipei

Chiang Kai Shek Intl

12000 ft

Taipei

Sungshan

8500 ft

Taitung

Chihhong

11000 ft

Taitung

Fengnin

7900 ft

Taoyuan

Taoyuan

10000 ft

(Source: Air charter world)

Telecommunications networks

In 2009, there is an increase of 5.71% in cellular phone subscribers from the previous year. The local telephone subscribers were decline by 2.29% from the year 2008.

(Source: stat.gov.tw)

Taiwan telecom Subscribers

Taiwan Internet Subscribers

 

(Source: stat.gov.tw)

In the year 2009, the total internet subscribers decreased by 5.96% compared to the previous year. The number of broadband subscribers in 2009 also decreased by 0.52% compared to the previous year.

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