Taiwan’s economy gathered momentum this quarter, with the economy growing by 3.8% in Q1 from 0.7 in Q3-2012. The country’s economic rebound had a positive bearing on Taiwan’s ECR score, which improved by 1.2 points to 74.9.
Taiwan’s strong performance in the survey this quarter was underpinned by improved political assessment, after economic and political cooperation between Taiwan and mainland China continued to expand in 2013. The developments had a positive bearing on Taiwan’s ECR score, which improved by 1.2 points to 74.9.
A recent report by Moody’s identified improved cross-Strait relations as a credit strength in 2013. “Trade and investment linkages have continued to expand with mutual benefits for both sides, culminating in the passage of the bilateral Economic Cooperation Framework Agreement in 2010,” notes Moody’s.
“Cross-Strait ties have been strengthened further with the start of offshore renminbi business in Taiwan in early February 2013.”
Closer Sino-Taiwanese economic ties and political cooperation were part of Taiwanese president Ma Ying-jeou’s election manifesto in January 2012.
ECR analysts have endorsed a closer bilateral relationship between the two sovereigns, as well as highlighting an improved business environment domestically, with improvements in Taiwan’s government stability (+0.3), institutional risk (+0.1), transparency (+0.1) and transfer risk (+0.1) indicators in Q1.