Approved German investments in Taiwan reached a new high of US$977.1 million in the first six months of this year, making it the second-largest foreign investor despite an ongoing economic slowdown, the German Trade Office Taipei said yesterday.
“The latest statistics indicate that German companies’ confidence in the Taiwan market remains intact,” the office’s chief representative and executive director Axel Limberg said.
German companies with operations here have assisted Taiwan with its infrastructure projects, and continue to invest in services and production facilities, Limberg said.
Photo: CNA
The investment volume was next only to Singapore’s US$2 billion and exceeded US$610 million by the US, US$592.4 million by British Caribbean Territories, US$512.6 million by the UK and US$495.5 million by Japan, it said, citing Ministry of Economic Affairs data.
Infrastructure projects — mainly electricity and gas supply — accounted for 91 percent of German firms’ investment, or US$889.5 million, the office said.
Professional, scientific and technical services drove another US$51.7 million, information and communication contributed US$15.3 million, and manufacturing made up another US$12.3 million, it said.
Investment in the manufacturing sector was in electrical equipment, computers, and electronic and optical products, it added.
Trade between Taiwan and Germany held stable at US$11.4 billion in the first half of this year, shrinking a modest 2.9 percent from the same period last year, but still significantly higher than pre-COVID-19 pandemic levels, while Taiwan’s trade with other major partners weakened, with China slumping by 28.1 percent, South Korea falling by 25.8 percent, Japan tumbling by 13.7 percent and the US declining by 12.2 percent, the office said.
Trade volume totaled US$377.8 billion in the first half, a 19 percent decrease from a year earlier, as exporters took a hit from inventory adjustments induced by poor end-market demand, it said.
The global economy remains in a precarious state and Taiwan’s economic slowdown would linger, as benefits linked to the COVID-19 pandemic fade away, it added.
Despite the backdrop, Taiwan remains an attractive investment destination for German companies, Limberg said.
“We are delighted that business relations between Taiwan and Germany have held stable,” he said.
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