ECONOMY

FACT FOCUS

Taiwan was the world’s 16th largest goods exporter in 2024.
Under the New Southbound Policy, Taiwan is deepening ties across the board with Australia, New Zealand, six South Asian countries and the 10 Association of Southeast Asian Nations member states.
Ministry of Economic Affairs

Taiwan holds an important position in the global economy. It is a top player in the world’s information and communications technology industry as well as a major supplier of goods.

According to the World Trade Organization, Taiwan was the world’s 16th largest exporter and the 18th largest importer in 2024. It was also one of the largest holders of foreign exchange reserves as of December 2024. According to the International Monetary Fund, Taiwan’s gross domestic product per capita reached US$34,430 as of April 2025. In terms of nominal GDP, Taiwan ranks close to Poland and Switzerland, while its GDP per capita expressed as purchasing power parity is similar to that of Denmark and the Netherlands.

Biotechnology is one of the sectors targeted for accelerated growth under Taiwan’s five-plus-two innovative industries plan. (Chin Hung-hao)

Trade Growth

Easing inflation and interest rate cuts in 2024 drove a rebound in global trade. Benefiting from emerging opportunities in artificial intelligence, high-performance computing and other innovative applications, in 2024 Taiwan’s total trade value reached US$869.4 billion, an increase of 10.9 percent over the previous year. Exports rose 9.8 percent and imports rose 12.2 percent. Annual surveys of the world’s economies, including those conducted by the International Institute for Management Development and Business Environment Risk Intelligence, consistently rank Taiwan among top nations for long-term growth and technological development. Results announced in 2025 are shown in “Global Survey Rankings” . In July 2013 Taiwan signed an economic cooperation agreement with New Zealand, its first with a member of the Organization for Economic Cooperation and Development. An economic partnership accord was also inked with Singapore in November the same year, marking Taiwan’s first such pact with a trading partner in Southeast Asia. Both agreements exceed WTO commitments. Such developments are expected to facilitate Taiwan’s participation in regional economic integration blocs such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership.

Taiwan signed economic cooperation agreements with Paraguay, Eswatini, the Marshall Islands and Belize in 2017, 2018, 2019 and 2020, respectively.

The agreements strengthen economic, investment, technological and trade ties, enhancing friendship with these countries.

The first agreement under the Taiwan-US Initiative on 21st-Century Trade was signed in June 2023. The two countries also enhanced supply chain cooperation and energy transition through the Taiwan-US Economic Prosperity Partnership Dialogue and the Taiwan-US Technology Trade and Investment Collaboration. On Feb. 22, 2024, the two countries signed an MOU on international development cooperation, which advanced Taiwan’s work with the US International Development Finance Corporation on private sector investment opportunities.

Development Approaches

In 2016 the government launched a new industrial development policy to expedite transformation and upgrades. This policy was called the five-plus-two innovative industries plan and became the key factor in driving industrial growth in next-generation smart machinery, Asia Silicon Valley, biotech and pharmaceuticals, green energy, national defense, new agriculture, and circular economy.

In 2020, building on previous policies, six core strategic industries were identified to link with 2019's Three Major Plans for Investing in Taiwan. These were the information and digital, cybersecurity, precision health, national defense and strategy, green and renewable energy, and strategic stockpile industries. Accelerated development of the targeted areas will enhance overall industrial development and create a better investment environment for sector transformation and upgrades.

The government promotes the Forward-looking Infrastructure Development Program to meet national infrastructure needs over the next 30 years. This program contains eight major elements: railway development, digital infrastructure, aquatic environments, food safety, green energy, urban-rural development, raising birthrates and expanding childcare facilities, and nurturing the workforce.

As it works to advance innovative industries, the government is committed to protecting the environment.

The new economic model seeks to fully integrate industrial restructuring, national land-use planning and regional growth strategies to foster sustainable development while advocating for use of green energy resources.

In response to the advent of generative AI and the challenges of digital and net-zero industrial transformation, the Asia Silicon Valley Development Plan 3.0 focuses on technology including AI, 5G and satellite networks to accelerate both digital and netzero carbon industry transitions. It aims to expand funding for startups over the next four years.

The government is working to raise wages and enhance regional development while mitigating global challenges and the US-China trade war. Measures are expected to improve industrial competitiveness and further bolster Taiwan’s economy.

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