Taiwan’s economy is in good shape as they have managed to curb the virus, according to a research institution. Plus, it is expected to even improve further.
The Chung-Hua Institution for Economic Research projected a growth of 1.77 percent increase in Taiwan’s economy for 2020. They have increased the forecast from 1.03 percent to 1.33 percent. This puts Taiwan in a unique position from most countries, given the blow of pandemic to the economies. According to the International Monetary Fund, worldwide economy is expected to shrink by 4.9 percent for 2020.
Out of the 23 million population in Taiwan, only 458 are reported to have a virus, meaning that the island does not even need implementing restrictions.
Previously, Taiwan has seen a decrease in their gross domestic product (GDP) for the second quarter, as noted by the Chung-Hua Institution. On the other hand, the institution observed an increase in Taiwan’s GDP for the present quarter, with about $600 billion to rise by 1.64 percent, given that their residents have eased anxieties over COVID-19 concerns. Their forecast for the fourth quarter is 3.09 percent. The research body also projects a 2.33 percent growth for 2021.
According to chief Asia-Pacific economist of Natixis bank Alicia Garcia Herero, “We expect Taiwan to do better as restriction in mobility is much less,” comparing its economic scene with other parts of Asia.
The manufacturing industry also saw growth in revenue, as Taiwan-based tech brands Acer and Asus caught an increase in demand on computing devices from all over the world, with lockdowns forcing people to report to work from home or transition to online education/classes. An analyst wrote earlier this month that Taiwan’s growth for this year and the next, will be partially buoyed up by “demand for Taiwan’s high quality electronics exports.
— COVID19 in Asia-Pacific (@SEACoronavirus) July 27, 2020
This was echoed by an observation last month by another research organization, citing Taiwan has managed to keep its economy afloat in the midst of a pandemic. According to the think tank Capital House, Taiwan’s non-lockdown made its economy “extremely well.”
The Taiwan government has managed to take hold of the coronavirus spread by requiring entry from overseas to be quarantined for 14 days very early on. They have also managed to do effective contact tracing of those who tested positive. This in turn benefitted businesses and industries who are still in operation without being burdened by restrictions.