This is the first time since 2012 that Fitch Ratings has upgraded Taiwan’s long-term foreign currency Issuer Default Rating (IDR) to from AA- to AA in September 2021.
Taiwan’s outstanding performance for the COVID-19 pandemic, increasing exports and consistent fiscal prudence contributed to the upgrade. It also predicted that Taiwan’s economy would grow by 6% for 2021, which providing a stable trend for the near future.
“Growth momentum is underpinned by robust export performance and Taiwan’s relative success in containing COVID-19 without causing major disruptions to manufacturing operations, including a recent outbreak”.
However, it also pointed out the island nation was lagging behind other major countries in terms of inoculation of the public, with only 45% having injected the first COVID vaccine and just 4% injected the second one.