Economy of Taiwan
Taiwan has a dynamic capitalist economy with gradually decreasing guidance of investment and foreign trade by the government. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Real growth in GDP has averaged about 8% during the past three decades. Exports have grown even faster and have provided the primary impetus for industrialization. Inflation and unemployment are low; the trade surplus is substantial; and foreign reserves are the world's third largest. Agriculture contributes 3% to GDP, down from 35% in 1952. Traditional labor-intensive industries are steadily being moved off-shore and replaced with more capital- and technology-intensive industries. Taiwan has become a major investor in the People's Republic of China, Thailand, Indonesia, the Philippines, Malaysia and Vietnam. The tightening of labor markets has led to an influx of foreign workers, both legal and illegal. Due to its conservative financial approach and its entrepreneurial strengths, Taiwan suffered little from the Asian financial crisis in 1997-1999, compared with many of its neighbours.