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Agence France-Presse

As the world’s economies reel from the coronavirus pandemic, Taiwan is on track to end the year clocking up enviable growth – a testament to its success in halting the deadly disease.
Throughout much of the year, shoppers have thronged stores, restaurants have stayed busy, tourist attractions have remained open and factories have kept humming.
In a remarkable contrast to comparable industrialised economies, which have taken a battering, official projections forecast growth of 2.5 per cent in 2020.
“That probably will be the highest in the world,” Lin Chu-chia, an economist at National Chengchi University, said.
For the first time since 1991, Taiwan’s economy is set to outgrow mainland China’s, where the virus first emerged but has now also been largely brought under control.
The International Monetary Fund estimates China will grow 1.9 per cent this year, compared with a global contraction of 4.4 per cent.


Taiwan’s ability to weather the coronavirus has centred on two crucial elements.
When the virus first emerged, authorities made economically painful and unpopular shutdown decisions. Borders were shut, strict quarantine measures enforced and carriers traced. As a result, Taiwan had no local infections for 253 straight days from early April.
That clean streak was broken on Tuesday when a woman tested positive after coming into contact with a foreign pilot, prompting a scramble to contain the new outbreak.
But it was because the disease was essentially defeated by the beginning of April that Taiwan’s hi-tech economy was in a unique position to roar back.
Taiwan reports first local coronavirus case in eight months
For decades, Taiwan has been the world’s premier destination for computer chip and electronics manufacturing. And at a time when vast swathes of the world were suddenly forced to work or learn from home, its factories were able to meet the soaring demand.
“The key drive for Taiwan’s economy is the robust export growth,” Lin said.
Exports soared to a record high of US$32 billion in October, up 11 per cent year on year, with double-digit growth in major markets including mainland China and the United States, official data showed.
November’s exports became the second highest ever, with the annual total on course to break records too. Earlier this month, the Taiwanese dollar was trading at levels not seen since 1997.
Topping the list of a string of tech companies that registered record profits in the third quarter is Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract microchip maker that supplies Apple and other international brands.
TSMC’s net profit in those three months rose by over a third year on year to US$4.8 billion. Meanwhile its shares soared more than 50 per cent since the beginning of the year, propelling the stock market to new highs.


Computer maker Acer saw revenues for its Chromebooks and gaming hardware rise 94 per cent and 70 per cent respectively, to lift net profit to its highest in almost a decade.
“We do see that the demand is higher than our supply into the foreseeable future,” said Acer CEO and chairman Jason Chen.
There have inevitably been some victims.
The hotel and tourism trade has been hit hard by the evaporation of international travel.
Combined revenue for listed hotels and tour operators in the first 11 months of 2020 fell 43 per cent from last year, according to the Taiwan Stock Exchange. But the fall could have been steeper had Taiwan suffered the repeated lockdowns and restrictions seen in many Western countries.
“I think it’s not just a coincidence that Taiwan’s economy can weather the pandemic,” general manager of Taiwan Champ Manufacturing Andy Chen said.
His company has been churning out face masks this year, its revenue soaring 12-fold and production set to quadruple to 700 million masks annually.
“Taiwanese companies have a keen sense of crisis that makes them more adaptable to changes,” he said.
Business for retailers, restaurants and domestic tourism has been steady since May.
“We’ve already reached our sales target and we expect a two-digit growth for this Christmas season compared with last year,” said Jenny Chien, a public relations manager for Gloria Outlets in the northern city of Taoyuan.
She said many people who could not take holidays abroad used their travel budgets to go on shopping sprees.
Others chose to put their money in the stock market, like 47-year-old accountant Jimmy Chang, who in just six months saw a nearly 20 per cent return on his investment.
“I think the bullish trend will continue as Taiwan’s economy is growing and life is going on as usual, in contrast with serious outbreaks elsewhere in the world,” he said.


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Taiwan

Coronavirus: Taiwan’s rapid response pays economic dividends in 2020

Taiwan’s economy boomed in 2020. Photo: Reuters

Taiwan reports first local coronavirus case in eight months

Taiwan has reported its first local coronavirus case in 253 days. Photo: AP

Taiwan counts 15 lives lost in 2020 and rising military cost amid escalating tension with China

Eight people died when a Taiwanese military Black Hawk helicopter crashed on January 2. Photo: Reuters

FILE - In this March 7, 2019, file photo, Taiwanese top military official Shen Yi-ming salutes as he is introduced to journalists during a press conference in Taipei, Taiwan. The defense ministry confirmed that Shen and a number of others were killed in a helicopter crash in a mountainous area in New Taipei City early Thursday morning. (AP Photo/Johnson Lai, File)

China’s Shandong aircraft carrier crosses Taiwan Strait a day after USS Mustin

Video footage from state broadcaster CCTV shows a J-15 fighter on board the Shandong. Photo: Handout

Lai Yijun, Captain of Shandong carrier (the left first), and political commissar Song Wenjun (the left second) are playing Òcarrier chessÓ with small models of carrier-borne aircraft, a manual approach to spot aircraft on and below the deck, including launch, recovery, maintenance, fueling and other operation, in case the computer system collapsed.. Photo: CCTV

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China

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China Economy


Island is set to record 2.5 per cent growth for the year, outstripping mainland China
When the virus first emerged, Taipei quickly shut its borders, enforced lockdowns and traced carriers



Island is set to record 2.5 per cent growth for the year, outstripping mainland China.


Coronavirus China

Coronavirus pandemic: All stories

Coronavirus: Taiwan’s rapid response pays economic dividends in 2020

Island is set to record 2.5 per cent growth for the year, outstripping mainland China When the virus first emerged, Taipei quickly shut its borders, enforced lockdowns and traced carriers

Island is set to record 2.5 per cent growth for the year, outstripping mainland China

When the virus first emerged, Taipei quickly shut its borders, enforced lockdowns and traced carriers