Taiwan has a developed market economy. The gross national product (GNP) of Taiwan demonstrates that its economy has been growing slowly but steadily over the past decade, except in 2009 when the global financial crisis took place. Even during the global spread of the coronavirus pandemic in 2020, Taiwan was able to maintain economic growth and was very successful in containing the negative effects of the pandemic.
Electronics, petroleum refining and chemicals are among major domestic industries. Taiwan also plays a significant role in the global semiconductor industry. Upon observing a sector breakdown of Taiwan’s gross domestic product (GDP), it becomes evident that it has successfully made the transition from a manufacturing-driven economy into an economy where around two thirds of domestic values generated originate in service activities.
Taiwan has a strong trading economy. Foreign trade has been the engine of Taiwan’s economic growth during the past few decades. In 2019, Taiwan denoted a merchandise trade surplus of about 43.5 billion U.S. dollars. Among its main trade partners are mainland China, Hong Kong, and the United States. Taiwan positions itself as a gateway to mainland China and Asia Pacific. Geographically, it finds itself between the world’s second largest economy, China, and the third largest, Japan.