Taipei, Nov. 13 (CNA) Local service sector output accounted for more than 60 percent of Taiwan’s gross domestic product (GDP) in 2022, according to the 2023 Business Services Yearbook published by the Ministry of Economic Affairs (MOEA) over the weekend.
The latest yearbook released by the MOEA’s Administration of Commerce showed local service sector output totaled NT$13.75 trillion (US$425.70 billion) in 2022, up about 2.37 percent from a year earlier and making up 60.85 percent of the country’s GDP.
While the local economy slowed down in the wake of weakening global demand, the local service sector remained resilient with consumers spending more in the post-COVID-19 era, market analysts said.
Su Wen-ling (蘇文玲), head of the commerce administration, said in a statement that the local service sector employed about 6.8 million people in 2022, which accounts for about 59.96 percent of Taiwan’s total workers.
Citing the contribution to the country’s GDP and workforce, Su said the local service sector has played an important role in Taiwan’s economic development and the local job market.
Su said the commerce administration is determined to improve local service industries and build a better environment to encourage consumers to spend by pushing for technology development and boosting the efficiency of these domestic demand-oriented industries.
In addition to large-sized department store chains, shopping malls and logistics business operators, Su said the commerce administration will also provide necessary assistance to smaller vendors, including night market stall owners.
Su added that the commerce administration will also help brands in the local sector expand overseas by increasing their visibility on the global stage.
In the statement, the commerce administration said the local service sector is helping drive economic growth, but urged companies to look beyond their traditional business mindset and be a leader in tackling challenges created by climate change and growing demand for environmental protection.
The agency said the government has set a goal of reaching net zero emissions by 2025 and is promoting the Environmental, Social and Governance (ESG) initiative to improve the service sector’s business sustainability and risk management.
In 2021, the local service sector generated NT$13.02 trillion in production value, marking the first time the sector’s output topped the NT$13 trillion level, up 2.78 percent from a year earlier. The 2021 figure accounted for 59.81 percent of the country’s GDP, according to the latest yearbook.
(By Liu Chien-ling and Frances Huang)