n offices at #7 Lane 134, Hsin Yi Road, Section 3, Taipei,
Taiwan, telephone: [886] (2) 2162-2000, FAX: [886] (2) 2162-2251; #2
Chung Cheng 3rd Road, 5th Floor, Kaohsiung, Taiwan, telephone: [886]
(7) 238-7744, FAX: [886] (7) 238-5237; and the American Trade
Center, Room 3208 International Trade Building, Taipei World Trade
Center, 333 Keelung Road Section 1, Taipei, Taiwan 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

Economy Taiwan

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. Exports have provided the
primary impetus for industrialization. The island runs a trade
surplus, and foreign reserves are the world's third largest. Despite
restrictions cross-strait links, China has overtaken the US to
become Taiwan's largest export market and, in 2006, its
second-largest source of imports after Japan. China is also the
island's number one destination for foreign direct investment.
Strong trade performance in 2006 pushed Taiwan's GDP growth rate
above 4%, and unemployment is below 4%. Consumer spending recovered
following a slowdown early in 2006, when banks tightened lending to
address a sharp increase in delinquent consumer debt.

GDP (purchasing power parity):
$668.3 billion (2006 est.)

GDP (official exchange rate):
$353.9 billion (2006 est.)

GDP - real growth rate:
4.4% (2006 est.)

GDP - per capita (PPP):
$29,000 (2006 est.)

GDP - composition by sector:
agriculture: 1.5%
industry: 25.2%
services: 73.3% (2006 est.)

Labor force:
10.46 million (2006 est.)

Labor force - by occupation:
agriculture: 5.5%
industry: 36%
services: 58.5% (2005 est.)

Unemployment rate:
3.9% (2006 est.)

Population below poverty line:
0.9% (2006 est.)

Household income or consumption by percentage share:
lowest 10%: 6.7%
highest 10%: 41.1% (2002 est.)

Inflation rate (consumer prices):
1% (2006 est.)

Investment (gross fixed):
18.4% of GDP (2006 est.)

Budget:
revenues: $67.33 billion
expenditures: $77.93 billion (2006 est.)

Public debt:
34.6% of GDP (2006 est.)

Agr