Taiwan

4.0 Stars - Very Attractive

Macro Outlook

  • Strong exports (particularly for electronic components) should continue to power Taiwan's economic growth.
  • While the strong economic growth will likely normalise after a superb 2021,  growth in 2022 is expected to remain above trend.
What we like about

  • Strong export growth - Taiwan's exports grew by 30% YoY as the trade surplus continues to widen.
  • China's vast appetite for chips should support Taiwan's exports for the foreseeable future.
  • The outlook for TSMC (the largest constituent of the TWSE index) remains bright.
Investment Risk(s)
  • Rising prices throughout the world could see Taiwan's trading partners to cut back on spending, which may affect export growth. 
  • Growth likely to moderate after a spectacular 2021. 
Source : Bloomberg Finance L.P, iFAST compilations. Data as of Mar 2022.

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