Taiwan's Economy
Inflation- In 2010 Taiwan's inflation rate was 1%, which compared to the rest of the world ranked them with the 19th lowest inflation rate. However in 2009 their rate was -0.9% which was actually a deflation rate. This rate is not a major concern and will have little to no effect on their economy. The inflation rate of countries located near Taiwan such as Japan and China are stable with Japan at -0.70% and China at 3.00%.
Unemployment- The unemployment rate in Taiwan for 2010 was 5.2 % and in 2009 it was 5.9%, so it has dropped a little from 2009 to 2010. According to CIA Factbook they are ranked 49th in the world for their unemployment rate. Compared to the United States Taiwan's rate is nearly half of the U.S.'s rate at 9.6% and very close to Japan whose unemployment rate is 5%.Taiwan has been trying to keep up with technology and new inovations that are replacing workers for more efficiency and productivity. For example the paper industry, where working conditions are very demanding. Recently Yuen Foong Yu Paper Manufacturing Company, one of the industry leaders in Taiwan, made headlines when it decided to lay off 100 women employees at its Chiutang plant in Kaohsiung County. At the end of this year, the Chiutang plant, which originally employed 1000 people, will complete installation of a new paper-making system. The machine, extending 100 meters in length, can produce 500-600 tons of paper per day, several times more than the previous smaller machines, and with 100% automation. The core problem of Taiwan's shriveled economy is the fact that Taiwanese businesses have lost their competitive edge on the global stage, and workers are being replaced by more efficient resources.
Real GDP- Taiwan has a GDP of $430.6 billion according to the 2010 figures. Taiwan's GDP Compared to neighboring countries, such as Japan with a GDP of $5.459 trillion, is much smaller. Taiwan's GDP per capita is $35,700 giving them the 32nd highest GDP per capita in 2010. For a small country their GDP per capita is average when compared to Japan or South Korea, even though Japan has a much larger population. Taiwan's real GDP and GDP per capita are somewhat consistent given that they have the 50th largest population in the world and the 32nd largest price per capita.
GDP Real Growth Rate- As of 2010 Taiwan's GDP has grown 10.8% which is the 4th highest GDP growth rate in the world. In 2009 their GDP was actually decreasing by 1.9%, however in one year it grew dramatically. This large jump in their GDP could trigger more inflation unless prices and quanity are both moving together.Over the past three decades Taiwan has averaged about an 8% growth in GDP, which puts 2010's figure above the average. Compared to countries like the United States and Japan they are in far better shape.
Economic Concern- Looking at Taiwan there are not that many areas of concern. Possibly the biggest area of concern is their real growth rate. If their prices are rising faster than their GDP than they will run into inflation which will ultimately effect their economy for the worse. A 10.8% increase in their GDP is a large number compared to other countries, however this number may just mean that they are expanding and increasing their quanity of goods as well as their prices. Possibly another area of concern for Taiwan in the future is their labor force. Women in Taiwan today are having less children and Taiwan has one of the lowest child birth rates in the world at .9 babies born for every person. Experts say this decline is due to more young women working and not getting married.
Bibliography
"CIA - The World Factbook." Welcome to the CIA Web Site — Central Intelligence Agency. Web. 12 Oct. 2011.
< https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html>.
Taiwan economy Copyright © 1996-2011 Travel Document Systems, Inc. ®http://www.traveldocs.com/tw/economy.htm
Cindy Sui BBC News, Taipei http://www.bbc.co.uk/news/business-15178296
Unemployment- The unemployment rate in Taiwan for 2010 was 5.2 % and in 2009 it was 5.9%, so it has dropped a little from 2009 to 2010. According to CIA Factbook they are ranked 49th in the world for their unemployment rate. Compared to the United States Taiwan's rate is nearly half of the U.S.'s rate at 9.6% and very close to Japan whose unemployment rate is 5%.Taiwan has been trying to keep up with technology and new inovations that are replacing workers for more efficiency and productivity. For example the paper industry, where working conditions are very demanding. Recently Yuen Foong Yu Paper Manufacturing Company, one of the industry leaders in Taiwan, made headlines when it decided to lay off 100 women employees at its Chiutang plant in Kaohsiung County. At the end of this year, the Chiutang plant, which originally employed 1000 people, will complete installation of a new paper-making system. The machine, extending 100 meters in length, can produce 500-600 tons of paper per day, several times more than the previous smaller machines, and with 100% automation. The core problem of Taiwan's shriveled economy is the fact that Taiwanese businesses have lost their competitive edge on the global stage, and workers are being replaced by more efficient resources.
Real GDP- Taiwan has a GDP of $430.6 billion according to the 2010 figures. Taiwan's GDP Compared to neighboring countries, such as Japan with a GDP of $5.459 trillion, is much smaller. Taiwan's GDP per capita is $35,700 giving them the 32nd highest GDP per capita in 2010. For a small country their GDP per capita is average when compared to Japan or South Korea, even though Japan has a much larger population. Taiwan's real GDP and GDP per capita are somewhat consistent given that they have the 50th largest population in the world and the 32nd largest price per capita.
GDP Real Growth Rate- As of 2010 Taiwan's GDP has grown 10.8% which is the 4th highest GDP growth rate in the world. In 2009 their GDP was actually decreasing by 1.9%, however in one year it grew dramatically. This large jump in their GDP could trigger more inflation unless prices and quanity are both moving together.Over the past three decades Taiwan has averaged about an 8% growth in GDP, which puts 2010's figure above the average. Compared to countries like the United States and Japan they are in far better shape.
Economic Concern- Looking at Taiwan there are not that many areas of concern. Possibly the biggest area of concern is their real growth rate. If their prices are rising faster than their GDP than they will run into inflation which will ultimately effect their economy for the worse. A 10.8% increase in their GDP is a large number compared to other countries, however this number may just mean that they are expanding and increasing their quanity of goods as well as their prices. Possibly another area of concern for Taiwan in the future is their labor force. Women in Taiwan today are having less children and Taiwan has one of the lowest child birth rates in the world at .9 babies born for every person. Experts say this decline is due to more young women working and not getting married.
Bibliography
"CIA - The World Factbook." Welcome to the CIA Web Site — Central Intelligence Agency. Web. 12 Oct. 2011.
< https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html>.
Taiwan economy Copyright © 1996-2011 Travel Document Systems, Inc. ®http://www.traveldocs.com/tw/economy.htm
Cindy Sui BBC News, Taipei http://www.bbc.co.uk/news/business-15178296