through a private corporation, the American Institute in Taiwan
(AIT), which has its headquarters in Rosslyn, Virginia (telephone:
[1] (703) 525-8474 and FAX: [1] (703) 841-1385) and offices in
Taipei at #7 Lane 134, Hsin Yi Road, Section 3, telephone [886] (2)
2709-2000, FAX [886] (2) 2702-7675, and in Kao-hsiung at #2 Chung
Cheng 3rd Road, 5th Floor, telephone [886] (7) 224-0154 through
0157, FAX [886] (7) 223-8237, and the American Trade Center at Room
3208 International Trade Building, Taipei World Trade Center, 333
Keelung Road Section 1, Taipei 10548, telephone [886] (2) 2720-1550,
FAX [886] (2) 2757-7162

Flag description: red with a dark blue rectangle in the upper
hoist-side corner bearing a white sun with 12 triangular rays

Taiwan Economy

Economy - overview: Taiwan has a dynamic capitalist economy with
gradually decreasing guidance of investment and foreign trade by
government authorities. In keeping with this trend, some large
government-owned banks and industrial firms are being privatized.
Real growth in GDP has averaged about 8% during the past three
decades. Exports have grown even faster and have provided the
primary impetus for industrialization. Inflation and unemployment
are low; the trade surplus is substantial; and foreign reserves are
the world's fourth largest. Agriculture contributes 3% to GDP, down
from 35% in 1952. Traditional labor-intensive industries are
steadily being moved offshore and replaced with more capital- and
technology-intensive industries. Taiwan has become a major investor
in China, Thailand, Indonesia, the Philippines, Malaysia, and
Vietnam. The tightening of labor markets has led to an influx of
foreign workers, both legal and illegal. Because of its conservative
financial approach and its entrepreneurial strengths, Taiwan
suffered little compared with many of its neighbors from the Asian
financial crisis in 1998-99. Growth in 2001 will depend largely on
conditions in Taiwan's export markets and may be about 5%.

GDP: purchasing power parity - $386 billion (2000 est.)

GDP - real growth rate: 6.3% (2000 est.)

GDP - per capita: purchasing power parity - $17,400 (2000 est.)

GDP - composition by sector: agriculture: 3%

industry: 33%

services: 64% (1999 est.)

Population below poverty line: 1% (1999 est.)

Household income or consumption by percentage share: lowest 10%: NA%

highest 10%: NA%

Inflation rate (consumer prices): 1.3% (2000 est.)