The nation’s global competitiveness has climbed two notches to 13th place this year, thanks to a top ranking in economic stability as authorities effectively kept inflation and government debt at bay, according to a World Economic Forum (WEF) report released yesterday.
The improvement came after the Geneva, Switzerland-based organization adopted a new methodology to better capture an emerging set of drivers on productivity and growth in the era of the “fourth industrial revolution.”
Taiwan was the fourth-best performer in the Asia-Pacific region after Singapore (second), Japan (fifth) and Hong Kong (seventh), but ahead of Australia (14th), South Korea (15th), New Zealand (18th) and China (28th).
The WEF measured 140 economies using 98 indicators grouped under 12 major groups.
The US earned top spot on its market size, stability and innovation ecosystem — including idea generation, entrepreneurial culture, openness and agility.
Taiwan won the top spot in macroeconomic stability with a 10-year GDP average of 2.6 percent, supported by benign inflation and low government debt.
East Asia and Pacific economies including Taiwan were the fastest-growing in the world and drove about one-third of global growth last year, primarily due to China’s contribution, the WEF report said.
The region’s developing economies grew 6.6 percent, owing to a favorable global economic outlook that encouraged a rise in exports, it said.
Most boast world-class physical and digital infrastructure and connectivity, macroeconomic stability, strong human capital and well-developed financial systems, although performance on the innovation ecosystem is uneven, it said.
Taiwan was fourth in innovation capability with room for improvement in multi-stakeholder collaboration and scientific publications, it said. Meanwhile, its research and development expenditure has stagnated against GDP.
“The region’s innovation hubs — Japan, [South] Korea, and Taiwan — could improve on the so-called ‘softer’ drivers of innovation to attain the level of ‘super innovators’ such as Germany, the US and Switzerland,” it said.
The nation’s infrastructure score declined from last year, as the indices on the reliability of water supply, quality of roads and airport connectivity fell, it said.
Taiwan achieved seventh place in financial system performance, thanks to the world’s lowest non-performing loans and the highest insurance premiums against GDP, the report found.
The WEF’s findings lent support to the government’s New Southbound Policy as South Asia remains the region with the lowest trade penetration in the world, with imports and exports of both services and merchandise amounting to 39 percent of regional GDP last year.
The report also called for openness in global trade, saying liberalization is good for competitiveness and not necessarily bad for inclusion.
“International trade helps drive down wages and employment in the manufacturing sectors most exposed to foreign competition, but protectionist policies to curb income inequalities would be ineffective and counterproductive,” it said.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old