Taiwan's export-dependent economy recovered strongly in
2010 after exiting what some analysts described as its
"deepest recession on record" in 2009.
The recovery was further boosted in June, when Taiwan signed an
Economic Cooperation Framework Agreement (ECFA) with mainland
China. The agreement is designed to boost both economies, and will
see the development of closer cooperation in trade and
investment.
The Taiwanese government estimates the agreement will create
about 60,000 new jobs in the first two years after it becomes law,
on January 1, 2011. This optimism is shared by many overseas
investors, who have invested heavily in Taiwan in the months
following the ECFA signing.
In September 2010, Taiwanese consumer confidence rose to its
highest levels since February 2004, with confidence in the stock
market and job opportunities increasing the most.
Taiwan's central bank cut interest rates in September 2010, and
again in early October 2010, brining a four-year tightening cycle
to an end. These moves are likely to improve access to credit for
Taiwanese borrowers and reduce the cost of buying major items like
houses and cars.
Taiwan's unemployment rate dropped to 5.17 per cent in August
and President Ma Ying-jeou has said publically that he expects it
to drop below 5 per cent by the end of the year.
Study tours by Taiwanese students are on the up, due in part to
the visa-waiver announcement in November 2009 that made it easier
for Taiwanese holiday-makers wishing to visit New Zealand.
A lack of direct flights is the main barrier for travelling to
New Zealand. However, arrivals from Taiwan from 2010 to 2016 are
forecast to grow on average by 3.5 per cent each year (Ministry of
Tourism).
Want to know more about doing business in Taiwan?
Visit the New Zealand Trade & Enterprise
corporate website
For more information please see the Tourism Strategy Group's website.