Report by the WTO Secretariat

Since its previous Trade Policy Review in 2014, the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu’s (Chinese Taipei) relatively strong fundamentals and well developed outward-looking economy have helped maintain macro-financial stability and ensure the resilience of its export-led economy. During the review period, annual GDP growth ranged from 0.8% (2015) to 4% (2014), and its annual average rate for the period 2014-17 stood at 2.3%, a major slowdown compared to previous performance (averaging 4.3% over 2002-13). Monetary and fiscal stimulus measures are being used to spur economic recovery. Despite some innovation- and labour-related concerns, Chinese Taipei has maintained its position among the world’s most competitive economies, with among the highest living standards, while registering a slight decline in income inequality. Weaknesses in some areas are being addressed via ongoing reforms. Whereas inflation evolved cyclically (0.6% in 2017), the unemployment rate dropped progressively (3.8% in 2017).