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미래전략 연구소2020-08-05T16:50:09+09:00

Taiwan 2020 Highest Foreign Investment Rate in a Decade Despite of Pandemic

Date
2020-07-22 14:35
Highest Foreign Investment Rate in a Decade Despite of Pandemic

 

According to the National Development Council (NDC), although the global coronavirus outbreak has caused economic damage, Taiwan is still expected to reach the highest investment rate in a decade.

 

NDC pointed out in the latest Taiwan Investment Trends data released on July 15th, 2020 that the country is able to maintain its GDP growth rate in 2020 at more than 1%. Although the epidemic has affected many economies around the world, they remain optimistic about Taiwan's financial prospects.

 

Cheng Chen-mao, deputy minister of NDC, said that the country’s estimated investment rate in 2020 will reach 23.44%, which will be the highest level since 2011. He pointed out that the total foreign investment, excluding Chinese investment, shows a 12% increase compared to the same period last year according to the data provided by the Investment Committee of the Ministry of Economic Affairs (MOEA).

 

He said the strong economic forecast may be due to its successful containment measures against coronavirus, the relocation of Taiwanese companies from China to Taiwan and government spending. He explained that the US-China trade war has caused several local companies to relocate back to Taiwan and the government’s new investment plan has helped boost domestic investment.

 

As far as the impact of the pandemic is concerned, Cheng pointed out that Taiwan has kept its number of COVID-19 infections to a minimum, which helps to demonstrate the country’s safe environment to investors from worldwide. He said that many companies have begun to realize the importance of protecting their production capacity by setting up bases in low-risk areas of COVID-19.