👉8 Reasons why Taiwan Economy is Declining
Channel: GeoStar TV
Date: 2020-03-27

8 Reasons why Taiwan is Declining.
Taiwan had been regarded as part of The 4 ASIAN small dragons. Singapore, Taiwan, South Korea, and Hong Kong. She was and probably is one of the leading places for microchips. However, Korea has been doing better. Everyone may know Samsung and LG for their mobile phones and tablets, but who knows Asus, which is one of the leading brands in computer peripherals and motherboards.
Taiwan has become one of the wealthiest regions in Asia. However, experts say it still depends too heavily on Chinese trade.
Taiwan began losing its roar in the 1990s, even as China's economy rose, eroding Taiwan's manufacturing competitiveness. Today, Taiwan has anemic growth, high cost of living, and rising youth unemployment. Many of its talented young are moving abroad, including to China and Singapore, for better work opportunities. 





Like Japan, the Taiwanese dollar was forced to appreciate against the US Dollar.
In the early 80s, it was about 1 US Dollar to 60 New Taiwan dollar; it is 30 now. This has been affecting their exports. In order to solve the problem, like Japan, they moved their manufacturing to other countries.

Moreover, as China’s economy rises, they also employ a lot of Taiwanese. The export of talented workers simply weakens the domestic economy.

Internally the political tension between the KMT and DDP, the DDP, and mainland China also affects the economy.
In the past years, tourists from China brought billions of income. And export to China of agricultural produces and food products provided another source of income.
Gross domestic product growth, year on year, was 1.72 percent in the first quarter,  down from 3.15 percent in the first three months of 2018 and the slowest since the second quarter of 2016.

Taiwan’s exports, which account for nearly three-quarters of GDP, have this year been hit by a sharp fall in demand for electronic components such as computer chips amid weaker device sales and slower global economic growth.

Sentiment has been further dented by the trade dispute between the US and China.

Taiwan didn't upgrade its economy, end of the story.
Welcome to The Atlantis Report.

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