Taiwan' economy is heavily dependent on tourism and related activities. As much as 70 percent of Taiwan' currency earnings come from tourist sector. Tuna fishing has also been a revenue generating sector for Taiwan. The nation is also trying to focus on other areas like farming and small scale manufacturing.
Taiwan possess a capitalist economy that is increasingly getting more and more independent from government control. The country has clocked an average economic growth of 8% in the preceding three decades. Its foreign reserves are calculated to be the world's fourth largest. Services dominate the GDP with 71.1% share. Industry and agriculture makes up 27.5% and 1.4% respectively. New Taiwan dollar (TWD) is the local currency.
Taiwan's rapid economic growth is attributed to its booming foreign trade. Industrial exports form the bulk of this trade. It is the world's biggest contract computer chip manufacturing country. Taiwan also lead the world in manufacturing networking equipment, DRAM computer memory, consumer electronics and LCD panel manufacturer. Total value of exports were $32.88 billion (2007). Its biggest export trading partner is China (32.4%). Other major markets for Taiwan made products are the United States (12.9%), Japan (6.4%) and Hong Kong (8.5%). Labor force in Taiwan is 10.71 million persons. GDP (purchasing power parity) is $698.6 billion (2007). GDP per capita
Agriculture in Taiwan is hindered by the fact that only a quarter of the land area of Thailand is arable. Lands suitable for growing crops, however, are intensely cultivated. Two or three crops are grown every year on the same tract of land. Taiwan is self-sufficient in rice production. The country exports substantial amounts of frozen pork. Wheat, however, is imported from the United States. Other imported products are metals, precision instruments, organic chemicals, electronic and electrical products, petroleum and machinery. The biggest importing partner is Japan with 22.1%. Other major exporting countries to Taiwan include the United States (13%), South Korea (7.3%) and China (10.9%).
Further developments in Taiwan depends on its success to transform the nation into a service-oriented and high technology economy. Its continuing liberal trade policy and diversification of trade markets an WTO membership wills enable it to become an Asia-Pacific regional operations center.