Coronavirus: Taiwan upbeat on 2020 growth as electronic exports jump, island stays lockdown free

Taipei expects economic growth of 2 per cent this year, thanks largely to its low number of coronavirus cases and lack of extreme containment measures

Taiwanese export orders unexpectedly increased by 4.3 per cent in March from a year earlier, with demand for electronic products rising nearly 24 per cent

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Taiwan has not had to implement sweeping lockdowns like many other countries to contain the coronavirus. Photo: Handout

Published: 6:30pm, 22 Apr 2020Updated: 6:30pm, 22 Apr 2020

The Taiwanese government is forecasting that the island’s economy will grow by 2 per cent this year, better than virtually any other developed economy in the world, in large part because of its success in combating the Covid-19 pandemic without having to resort to extreme containment measures that hurt business activity.

In addition, foreign demand for the island’s signature hi-tech products has risen strongly due to the increase of videoconferencing and online activity to support work-at-home and social distancing guidelines around the globe.

Still, if the government’s growth forecast sounds high, it probably is, economists warn. The International Monetary Fund, for instance, is projecting Taiwan’s economy to contract by 4.0 per cent this year.

Even so, the self-ruled island is not expected to fall as hard as other economies because the government has not had to mandate lockdowns, meaning consumers have been able to better maintain their lifestyle, helping support retailers, restaurants and other service sector businesses that have been hardest hit in other countries.

Taiwan had reported only 426 confirmed coronavirus cases as of Wednesday afternoon, less than half the number of Hong Kong and well below those of other Asian countries. Only six people have died from the virus – a much lower fatality rate than neighbouring countries in the region.

Taiwan’s Vice-President Chen Chien-jen, an epidemiologist, has taken a lead role in managing virus control efforts, after having successfully managed Taiwan’s brush with Severe acute respiratory syndrome (Sars) in 2002-2003.