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Country Forecast Taiwan Updater

  • ID: 2105427
  • Country Profile
  • May 2021
  • Region: Taiwan
  • 17 Pages
  • The Economist Intelligence Unit
The Democratic Progressive Party (DPP) retained the presidency and a majority in the Legislative Yuan (LY, the legislature) in national elections in January 2020. Although its legislative majority is narrower than during its previous term, the LY remains tilted more towards the DPP than the opposition Kuomintang (KMT). This will be positive for political stability and policymaking. The Economist Intelligence Unit expects the DPP to maintain its position in government in the 2024 elections.

Taiwan will maintain an accommodative fiscal and monetary stance in 2021, as a result of lingering uncertainty tied to Covid-19. However, its successful mitigation of the pandemic will allow policy focus to return to medium-term goals in 2021. These will include expanding the stock of housing, improving childcare and eldercare and refining industrial policy towards strategic industries. The last point will include encouraging domestic manufacturers to reshore their operations from China to Taiwan.

China is proactively seeking to reduce Taiwan's international diplomatic participation. Although military conflict is unlikely, Chinese aggression means that the risk of a clash in the Taiwan Strait has risen, and a move against Taiwan's holdings in the South China Sea is also possible. The DPP will prioritise strengthening economic and security ties with the US in response.
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Country Forecast Taiwan Updater

Country forecast overview: Highlights

Country forecast overview: Key indicators

Country forecast overview: Business environment rankings

Country forecast overview: Taiwan's business environment at a glance
Policy towards private enterprise and competition
Policy towards foreign investment
Foreign trade and exchange controls
The labour market
Technological readiness

Fact sheet

Outlook for 2021-25: Political stability

Outlook for 2021-25: Election watch

Outlook for 2021-25: International relations

Outlook for 2021-25: Policy trends

Outlook for 2021-25: Fiscal policy

Outlook for 2021-25: Monetary policy

Outlook for 2021-25: Economic growth

Outlook for 2021-25: Inflation

Outlook for 2021-25: Exchange rates

Outlook for 2021-25: External sector

Data summary: Global outlook

Data summary: Gross domestic product, current market prices

Data summary: Gross domestic product, at constant prices

Data summary: Gross domestic product by sector of origin

Data summary: Growth and productivity

Data summary: Economic structure, income and market size

Data summary: Fiscal indicators

Data summary: Monetary indicators

Data summary: Employment, wages and prices

Data summary: Current account and terms of trade

Data summary: Foreign direct investment

Data summary: External debt

Data sources and definitions
Global data
Domestic data
Note: Product cover images may vary from those shown