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Investment rate on track for 27-year high in 2022
Courtesy of ICRT & ECCT staff writers
The Directorate General of Budget, Accounting and Statistics has said it expects Taiwan's investment rate to hit a 27-year high in 2022, as local companies expand production and upgrade technologies.
According to DGBAS forecasts, Taiwan's investment rate -- the ratio of capital formation to gross domestic product in a country -- will hit 27.82% in 2022, up from 26.96% in 2021. The estimated 2022 figure is the highest since 1995.
The DGBAS said the local semiconductor industry had significantly driven the growth in local investments, as firms sought to maintain their lead over overseas competitors in high-end technology development, a move which has prompted many downstream manufacturers in the supply chain to invest in Taiwan.
In addition, according to statistics provided by the Investment Commission of the Ministry of Economic Affairs, 2,030 foreign direct investment (FDI) projects with a total value of US$11.56 billion were approved from January to October 2022. This is an increase of 119.36% in FDI compared to the same period of 2021. A large portion of these investments were made by European investors in Taiwan’s offshore wind energy sector.
