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The manufacturing sector has been the key driving force for Taiwan's economic development. Over the past 50 years, the government and the private sectors in Taiwan have been working together to continuously enhance industrial competitiveness and to achieve steady economic growth. As a result of these efforts, Taiwan has become the global center for IC foundry and flat panel display as well as a manufacturing powerhouse for many high-tech products.
- The macroeconomic environment
The economic performance of Taiwan over the past decades has been strong and stable. Between 1991 and 2000, the average annual growth rate of GDP was about 6.4%. After suffering negative growth for the first time in 2001, the economy recovered to resume a path of steady growth. In 2007, the GDP grew by 5.7%; whereas, in 2008, the GDP growth decreased to 0.06% due to global economic downturn.
- Current status of Taiwan's Industrial Development
The contribution of the industrial sector to GDP reached a peak in 1986 at 44.8% and since then has steadily declined. In 2008, the industrial sector's contribution to GDP decreased to 25%, while that of the services sector increased to 73.3%. With the advent of a knowledge-based economy, the services sector's contribution to GDP is expected to continue to rise; whereas, agricultural sector's contribution to GDP has been falling for decades and plummeted to only 1.7% in 2008.
- The Industrial Investment Climate
A Superior investment environment and attractive incentives are the main factors in promoting both the industrial and economic development. Taiwan possesses a well-established infrastructure, excellent industrial parks, abundant talents, a sound fiscal system, strong technological capabilities, competitive tax incentives, and a solid legal framework, providing an excellent environment for Taiwan's industrial development.
- Key Strategies and Measures
The IDB has been implementing a wide variety of measures to strengthen the industrial development in Taiwan, and to help enterprises adjust to changes in the external business environment, such as the ongoing process of economic liberalization, improvement of environmental quality and changes in employment relations.
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