Maybe is because there are many small and medium enterprises that keep doing good business , specially in trading and manufacture
Some interesting articles for reference :
It’s the same reason the GDP is growing throughout Asia. Asians in general are quite frugal and have ridiculously high saving rates. More saving means more investment means more money. This is only a viable option for an export oriented economy though, because they depend on foreign markets rather than growing domestic market. For countries like the US its better to spend. So basically sell shit to other countries and investment most of the income to make more shit and sell more.
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How can Taiwan’s per capita net financial assets be higher than HK’s when its incomes are much lower (at the exchange rate).
We know the story with Korea. Its wealth was wiped out by the financial crisis.
Although the number might seem too high given that gross national income per capita stands at NT$768,959 (US$24,821), according to data provided by the Directorate-General of Budget, Accounting and Statistics (DGBAS), Allianz Taiwan Life Insurance Co (安聯人壽) said the average was boosted by the financial investments of very rich people.
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Another reason this past year is exchange rates, the Taiwan dollar is 5-10% stronger than most currencies.
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Hmmmm which washed out now B movie actor who needs the money could we choose to play the part.
Yeah, when they are rich they are very rich here I guess. Something ten to twenty families largely own the financial conglomerates, transport and plastics industry. Some of them like the LIn are rich for st least a hundred and fifty years.
I believe Taiwanese invest a lot of money overseas, from middle class up to the wealthy (through life insurance funda, bonds , equities , currencies , properties and companies…And they are quite conservative investors too).
Of course the property market inflating so much in the big cities also drove a lot of it for people all over the island along with the pyramid reversal (wealth channeling from grandparents and parents into one or two or three grandchildren )
. But what keeps the economy from the booms and busts that we see overseas is probably the frugal nature of locals and government alike…Since I’ve lived in Taiwan , twenty years, there’s been not even one boom period (and there were long periods of relative stagnation ). Yet the place seems to be getting richer. Just steady as she goes . Taiwan defeating covid (for now ) leaves it in a much richer relative state than many countries that are going into debt now to deal with the crisis.
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Mel Gibson, obviously.
I honestly don’t think of him but he is a great choice. 
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I asked my father in law this exact question a few years ago. How does the Taiwanese government fund itself when taxes are so low?
He looked confused for a second and then his face lit up like he suddenly realized something.
“Every year you have to pay NT$4000 to register your car!”
This really cracked me up. I didn’t pursue the conversation any further than that.
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Maybe its more telling of what other Governments are wasting their tax dollars on.
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That occurred to me. The US for example spends a huge amount of taxpayer money of military programs. Whether it’s fancy new weapons & hardware, or simply salaries and pensions for soldiers and officers, that takes up a real chunk of GDP.
But then I thought, surely Taiwan must spend a lot on defense, too? I actually just looked it up and apparently Taiwan spends 3.6% of GDP on defense and the US spends 3.4%. So, almost the same.
The US probably spends more on social security and other benefits? That’s a rabbit hole I don’t have time to go down…
Yea it will remain a mystery…
What benefits do you get in Taiwan except health care?
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I have no idea. Probably not much. My guess is that the US spends a much higher % of GDP on benefits than Taiwan does, but I’ve never looked into it.
This is the only explanation in this thread that makes sense to me.
Another explanation is the when industries started hallowing out to China, the profits still went to Taiwanese people.
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Some benefits (small $ in the whole budgets but important to the people who use it). Food for elders and poor. Social Services for elders. ( I have Social worker friend here in Southern Taiwan she makes NT50,000+ (US1,800mo) her Uni classmate who moved to So California made 3X more at age 30 (US$50K+ year) so USA spends a lot more. BUT the stories from the USA social worker so much money spent on drug related problems and how bad/awful are the Asian youth she helps, she works with police trying help under 18’s., makes the Taiwan wonder the extra pay is worth it and stress. but that just another difference…). But to the topic, my rubbish pick is free (maybe you pay via bag tax) and six days a week here vs. paying for once a week pick up back home. Power (electric) is partial paid by gov, Tai-Power is state owner loss making, seems the state covers it. As mentioned there is social services, most here do not use it or need it. There are what seems to me better parks, roads, musuems ect compared to back home for me, so a lot of services that maybe not used by ex pats. Its just USA spends more (Taiwan pay what NT$50,000 mo vs USA NT$130,000+ mo) on salaries, and society’s problems. Also Taiwan spends a lot on Education.
Infrastructure. Have you seen the roads and public transport in the States? Infrastructure costs multiples of what it would cost in Taiwan and even then they can’t do it.
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Hard work ethic
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