Taiwan's Economic Outlook: A Challenging Year As Global Semiconductor Sales Slump

Summary

• This note analyses the macroeconomic environment of Taiwan.
• The economy should have entered a mild recession in the first quarter of the year due to low demand for semiconductors.
• We look at how fiscal and monetary policies could help the economy during this hard time.
• We also expect USD/TWD to be volatile during the year.

TERADAT SANTIVIVUT

By Iris Pang, Chief Economist, Greater China

Taiwan's economic structure

Taiwan is a small open economy. The size of the economy was US$739bn in 2022 in nominal terms. It has been the smallest electronic manufacturing economy in the region