NationStates Jolt Archive


Taiwan posts GDP growth of 8.5%

_Taiwan
14-02-2004, 10:07
Recovery Mode
-Taiwan Economic Review

As exports continue to increase and the domestic demand recovers, Taiwan's economy has pulled out of the post-war reccession and reported it's first quarter of positive growth for the last year.

The export-lead recovery is in part due to the devaluation of the currency, which is currently pegged to the US dollar at the rate of 6.2 United China Dollars per US dollar. Business confidence surveys also indicate a recovery from the wartime slump. The index broke the 100 barrier at the end of the last quarter, settling onto the 123 now. Anything over 100 signifies confidence in the economy.

Unemployment however continues to be a black spot in the economic recovery, which has so far being jobless. The official unemployment rate fell from 8.2% in the last quarter to 6.8%. However, a large proportion of the jobs created is due to the construction and rebuilding of Taipei.

GDP growth has been reported at 8.5% - higher than the Eurozone and most of Asia. With domestic demand starting to recover, now would be a suitable time for foreign investors to re-enter the Southeast Asian market of Taiwan.