Taiwan's Economy: Slower Growth and Further Dependence on China

The Taiwanese government forecasted economic growth to dip from 10.7% in 2010 to about four per cent in 2011 and 3.9% in 2012. Reasons for the dip were the earthquake on 11 March 2011 in Japan and the weak demand from Europe and US markets, a situation which is expected to affect the Taiwan economy in 2012. Nonetheless, cross-strait economic relations are likely to progress further after Kuomintang's victory in the 2012 presidential election.