GDP in Taiwan is not better than before the pandemic. However, the country is struggling a lot to save Taiwan GDP growth. In 2022, their growth is about 3.8% and it brings some effects on lifestyle, behaviors, and industrial activities. Here are some factors that contribute to the growth.
Taiwan GDP Growth Factors
Realization of Purchasing Better Goods
Taiwanese have had better confidence recently to buy excellent goods. Consumer morale is increasing in Taiwan and it contributes to the factor of its GDP growth. They are more optimistic about getting premium goods with their income. Their confidence index reaches 62% in 2023, better than the previous year.
The rate of employment opportunities in Taiwan market research is higher because the country has ready-skilled labor that fits the demand in the market. A lot of positions are filled by productive age in Taiwan, so the rate of unemployment in this country is only 3.6%. The number is very small in Asia.
However, Taiwan still faces the challenge to fit their labor in foreign markets as well. They are open to this possibility as long as they can lower the employment rate in the country. Those who work overseas can bring better money for their family and their spending behavior is higher.
Increased Retail Sales
Retail sales in Taiwan are increasing in a lot of categories such as motorcycles, food and beverage, tobacco, and some communication equipment. The trade has a confidence level because the growth increases by 1.3%. This activity is expected to continue until Q4 in 2023.
Inflation in Taiwan
Though the inflation rate in Taiwan is lower than other neighbors, the rate of inflation is higher in 2022. In 2023, the government expects that it should be decreasing. In 2023 January, the probability is about 3.04%. While they have a target that the inflation should be lower than 2.7%.
Inflation affects a lot of things. Taiwan market research noted that inflation creates higher prices and rents such as housing, health, education, clothing, and other goods. The price of communication equipment in Taiwan also increases in January 2023 because of the rising inflation rate.
Industrial output in Taiwan is shaking in January 2023 and the main reason is falling industrial activity. Water, gas, mining, and electricity supplies in Taiwan sharply dropped in the first days of 2023. However, the government is confident that in the next few months, this situation will be solved.
As a member of Four Asian Tigers, Taiwan GDP growth is expected to rise again in 2023. They rely on the production of machinery and electronics. At the same time, their effort is to lower the unemployment rate in Taiwan.