Taiwan’s per capita income on track to surpass Japan in 2022

TAIPEI (TVBS News) — As the pandemic situation stabilizes in Taiwan, restaurants and department stores are once again filled with shoppers and gourmets on weekends.

While Taiwan's exports helped sustain the economy during the height of the pandemic, the slowly revived domestic market will need to pull its weight to maintain economic activity at the same level.

Taiwan's per capita income, which reached US＄33,000 in 2021, is now set to reach US＄35,000 by the year's end, according to the International Monetary Fund. It is set to surpass Japan and South Korea at the projected US＄34,000 and US＄33,000 respectively.

But, what are the contributing factors?

Darson Chiu, researcher at the Taiwan Institute of Economic Research (TIER), explained that the main reason lies in Taiwan's stable economic growth. "Compared to Japan and South Korea, our exchange rates are also more stable," he said, adding that Taiwan's population aging issue is slightly better than that of Japan.

On economic growth, Taiwan is also viewed in favorable light by the Asian Development Bank. According to projections, Taiwan is set to reach a 3.4% economic growth this year, surpassing China's 3% due to Taiwan's high number of export orders.

As the growth is based on exports in the technology and manufacturing sector. However, it's not reflective of the general public's day-to-day economic situation.