Taiwan economy growth’s record last year comes as a surprise to the world. With 2.98% economy growth in 2020, Taiwan beats China for the first time in 30 years. Taiwan’s strong tech exports seem to have pumped the country’s economy in 2020.
Asia’s top-performing economy of 2020: Taiwan
Taiwan is excelling both in the economy and COVID-19 pandemic mitigation. Taiwan Centers for Disease Control reported 911 infected people and 8 deaths as of Sunday. A comparably low number compared to other Asian countries. Taiwan’s success in suppressing the virus becomes a reasonable explanation for the strong economic growth.
Taiwan statistics office revealed in Friday that the island’s economy raised 2.98% in 2020 compared to the previous year. According to CNBC, the figure edged out Vietnam’s 2.9% record. It also easily surpasses its central bank’s prediction at 2.58%. With this, Taiwan automatically outgrows China’s 2.3% full-year growth in 2020. This achievement is the first in 30 years. Taiwan’s 5.5% economy growth beating China’s 3.9% in 1990 was the last time the same occurrence had happened.
Noted from CNBC, Angela Hsieh, an economist at British Bank Barclays said, “2020 has been a record year for Taiwan, and we expect the star to continue shining.”
Semiconductor became Taiwan’s strongest quality
Taiwan recorded a strong surge in exports in the second half of 2020, specifically semiconductors. With how the pandemic is halting other countries from producing semiconductors, a global shortage of semiconductors occurs. Meanwhile, more and more people are purchasing electronics in the pandemic. This causes an uprising demand for semiconductors to Taiwan, which is a semiconductors production powerhouse. With how the strong global semiconductors demand, economists predict Taiwan might even expand its economic growth in 2021 to 5.2%.
Quoted from CNBC, economists at research firm TS Lombard estimated Taiwan and South Korea to majorly contribute in chip production. Both countries are expected to account for 83% of global processor chip production and 70% of memory chip output. This also hints that both countries will have a near-monopoly status in both elements of the industry.