Taiwan’s economy is booming and this has been driven almost entirely by exports, whereas domestic demand, and especially consumer spending, has been sluggish. That’s because faster wage increases in the electronics sector have benefited only a small share of the workforce. Some of that additional income appears to have been used to purchase residential property, contributing to a run-up in prices in the city of Hsinchu. That said, we expect consumer spending to pick up from here which is one factor underpinning our above-consensus forecast for 5% GDP growth in 2026.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services