Taiwan’s government successfully guided the country through two tumultuous years marked by societal, economic and international disruptions. In 2022, however, President Tsai’s Democratic Progressive Party suffered a significant defeat in local elections. Internationally, a major threat remains as the Chinese government aggressively seeks to unify Taiwan with mainland China.
Economically, Taiwan remained in the world’s top 20 economies in terms of macro stability, international competitiveness and market-friendly policies. Furthermore, Taiwan’s economy experienced impressive growth and compared to global trends, inflation levels and volatility have been low. Nonetheless, unemployment slightly increased in 2021.
In the future, the government needs to address two most pressing and unsolved domestic political challenges: the country’s energy insecurity, which is only set to increase after phasing out nuclear energy in 2025, and the effects of Taiwan’s rapidly aging population.
