The slowdown in China’s economic growth, the plunge in commodity prices and severe currency devaluation against the dollar made for a tough 2015 in emerging Asian economies. Alhough Taiwan’s gross domestic product growth has slowed – from 3.77% in 2014 to an expected 1.56% in 2015 – the central bank’s stabilisation policies helped the country weather these tough 12 months.
Taiwan is suffering a double-whammy of slowing Chinese export demand and China remodelling its supply chain as it starts to produce rather than import Taiwan's mid-value products. Export growth to mainland China and Hong Kong – Taiwan’s largest trading partners – dropped by 11.1% in the first nine months of 2015, contributing to a 4.4% decrease in overall export growth.
