Strong macroeconomic fundamentals, critical export dependencies

A1

LOW RISK for enterprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in July 2023.

Swipe to view more

GDP USD791bn (IMF 2022)
Population 23.3mn (IMF 2022)
Form of state Multiparty Democracy
Head of government Tsai Ing-wen (President)
Next electionsJanuary 2024, presidential and legislative January 2024, presidential and legislative
  • Functioning, stable democracy with robust institutions
  • Good record of sound economic management, pro-business environment, well-trained workforce
  • Demonstrated economic flexibility, enabling rapid shifts along the value-added scale
  • High domestic savings and investment
  • Very strong external liquidity
  • Increasingly tense (geo)political relationship with mainland China
  • Highly dependent on demand from mainland China, Hong Kong and the U.S. (export-dependent economy)
  • Openness of the economy leaves it vulnerable to external demand shocks
  • Heavy concentration in the IT/electronics sector

Trade structure by destination/origin

(% of total, 2021)

Exports Rank Imports
China 28.2%
1
21.6% China
United States 14.7%
2
14.7% Japan
China, Hong Kong SAR 14.1%
3
10.4% United States
Japan 6.5%
4
8.0% Korea, Republic of
Singapore 5.8%
5
4.1% China, Taiwan Province of

Trade structure by product

(% of total, 2021)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 43.8%
1
28.0% Electrical machinery, apparatus and appliances, n.e.s.
Office machines and automatic data processing machines 8.9%
2
7.9% Specialised machinery
Plastics in primary forms 4.1%
3
7.9% Petroleum, petroleum products and related materials
Manufactures of metal, n.e.s. 3.4%
4
4.3% Office machines and automatic data processing machines
Professional and scientific instruments, n.e.s. 3.3%
5
3.7% Professional and scientific instruments, n.e.s.
Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East