TAIPEI, Taiwan – The global network of the German Chambers of Commerce Abroad (AHKs) conducted a flash survey among its 140 locations in 92 countries from March 17 to April 9, 2021. It confirmed the results of the Business Confidence Survey published by the German Trade Office Taipei in February.
The results for Taiwan show that almost two-thirds (62.8%) of the German companies predict their business to improve within the next twelve months and not even one single company expects their business to worsen. Furthermore, none plans to lay off any employee, quite the contrary, 44.2 percent even intent to increase their workforce.
When asked about the economic development of Taiwan over the next twelve months, the German companies are even more optimistic than in the GTO Business Confidence Survey. 74.5 percent predict the economy to improve or even improve significantly, up 11.2 percentage points from the results at the beginning of the year. 23.3 percent expect it to remain the same.
However, the survey also revealed challenges. Decrease in demand (48.8%), trade barriers (34.9%), as well as economic framework and exchange rates (25.6% each) are currently seen as major challenges. When directly asked about the impact of the COVID-19 pandemic on their business operations, 68.3 percent identified travel restrictions as the biggest impeding factor. This constitutes an increase of 26.7 percentage points from the results of the previous survey, indicating the significance of free travel for maintaining and expanding business relations. Problems in the supply chain (51.2%) and the cancellation of trade fairs and events (36.6%) were placed second and third, respectively.
Despite the impacts of the pandemic, only 2.3 percent will decrease their investments in Taiwan, while 32.6 percent even plan to increase them. Furthermore, 41.5 percent expect economic operations return to normal in the second half of 2021, 22.0 percent even predict it to take place in the first half of 2021.
For further information, please contact Mr. Christoph Lory
Tel: +886-2-7735 7509 Email: lory.christoph(at)taiwan.ahk.de