Taiwan possesses a highly developed, high-income capitalist economy that ranks among the top 25 globally by nominal GDP (often exceeding $800 billion USD). It transitioned from an agricultural base in the mid-20th century to an industrial and technological powerhouse, becoming one of the "Four Asian Tigers."
The economy is deeply integrated into global supply chains. Taiwan's economic lifeblood is its export sector, particularly in electronics, machinery, and petrochemicals. While the cost of living is lower than in many Western nations, housing affordability in major cities like Taipei is a significant challenge due to stagnant wage growth over the past two decades compared to rising property values.
Despite diplomatic isolation, Taiwan maintains strong trade relations worldwide and is a member of the WTO and APEC. Its economic strength is often described as its "Silicon Shield," given the global reliance on its advanced manufacturing capabilities.