Taiwan Rises to 4th in Global Competitiveness; Premier Warns of Fiscal Slippage

Taiwan's overall competitiveness ranking surged to a record 4th globally in the 2026 IMD World Competitiveness Yearbook, marking its best performance ever and its first time in the top five. The island also maintained its top position among economies with over 20 million people for the sixth consecutive year.

Premier Cho Jung-tai attributed this achievement to the collective efforts of the nation's people, workers, and businesses. He highlighted Taiwan's strengths in "credibility," "adaptability," and "overall resilience" amidst rising geopolitical risks and economic fragmentation. The island's stable democratic governance, robust industrial supply chains, leading technological innovation, and agile business operations were cited as key factors in its strong economic resilience.

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The Legislative Yuan should be vigilant about this situation.

Despite the overall positive trend, Cho expressed concern over a slip in the "fiscal situation" indicator, which fell from 3rd to 7th place within the "government efficiency" category. He questioned the decline, especially given Taiwan's developed economy and its 5th-ranked capital market. Cho suggested that changes in fiscal law or a perceived imbalance in the distribution of resources between the central and local governments might be contributing factors.

Cho urged the Legislative Yuan to be vigilant about this situation, emphasizing that the Executive Yuan's version of the "Fiscal Revenue and Expenditure Allocation Act" is the most beneficial for the nation and its people. He reiterated the administration's commitment to promoting this version, which aims to strengthen national finances and support necessary government expenditures through cooperation between the central and local levels.

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The Executive Yuan's version of the 'Fiscal Revenue and Expenditure Allocation Act' is the most beneficial for the nation and its people.