Statistical Analysis of National Wealth 2006

In 2006, the economic growth rate of Taiwan was 4.9%, which was higher than 2005’s 4.2%. Gross capital formation increased by 3.3% from 2005 at NT$2.5292 trillion. Consumer, wholesale and import prices increases by 0.6%, 5.6% and 8.8% respectively. In terms of finance, the 2006 year-end stock index was 7,824, increasing by 1,276 points or 19.5% from the 2005 year-end 6,548. The values above are all displaying the fluctuating situation in the same year. The statistical conclusion of stock is analyzed as the following:

I. Gross and Net National Wealth

(A)2006 gross value totals at NT$134.8 trillion, net value at NT$107.1 trillion: at the end of 2006, the gross value in Taiwan was NT$134.8 trillion, net value after deducting the depreciation was NT$107.1 trillion. Reviewing the gross value, land (evaluated based on the current land value government announced) ranks first at 45.0%, building construction comes in second at 12.3%, with machinery equipment following at 11.0%. Excepted land, stock and net foreign assets in the net value not listed for depreciation; reviewing assets structure in net value, land rose to 56.7%, followed with net foreign assets at 12.4%, exceeding the building construction at 8.5% (see table 1).

(B)The 2006 gross value increased by NT$7.9 trillion over 2005: In comparison with 2005, the 2006 gross value increased by 7.9 trillion or 6.2%, excepting stock assets decreased by 0.4 trillion due to product prices declining. Rest of categories of assets increased, land had the most prominent increase of NT$3.0 trillion due to the rising of yearly government announced current values; the foreign assets also increased by NT$1.5 trillion, resulting from both the foreign current deposits and household outward investment increasing. Both of the value of building construction and structure construction increased by NT$1.1 trillion (see table 1).

(C)Gross value by sectors, with enterprises ranking first at 33.5%: Reviewing the sectors of all economic activities in Taiwan, enterprises rank first at 33.5% or NT$45.2 trillion, households were next at 30.8% or NT$41.6 trillion. Following in order are the government at 22.9%, the finance sector at 10.0%, non-profit institutions at 2.8%, and the enterprise and the finance sectors combined amount to 43.5% or NT$58.6 trillion (see table 2). 

(D)Productive assets takes up the highest percent of reproducible assets at 54.3%：From the reproducible assets perspective (land and net foreign assets deducted from gross value), assets can be categorized by the functions they serve. The categories are: “productive assets” (including enterprises and finance sector assets), “social assets” (including the assets of the government and non-profit institution assets), and “household assets” (assets used by all households). Thus divided, “productive assets” ranks first at 54.3%, “household assets” second at 28.1%, and “social assets” third at 17.6%. “Social assets” has not only shown a growth trend over the last 5 years, raising the rate from 2002’s 16.0% to 2006’s 17.6% (see table 3).

(E)2006 net value per capita NT$4,700,000, increasing by NT$ 245,000 over 2005:  Gross national wealth divided among 22,790,000 population of Taiwan at the end of 2006, stands at NT$5,910,000 (US$181,000) (i.e. gross value per capita), increasing by 5.7% from the 2005’s NT$5,590,000 (US$170,000). The net value per capita stands at NT$4,700,000 (US$144,000), also increasing by 5.6% from the 2005’s 4,450,000(US$ 136,000) (see table 4).

II. Assets and Liabilities by sectors

(A)Households rank first at 64.6% in net assets (net value plus net financial assets): Reviewing net assets by sectors, households and non-profit institutions ranked first with 64.6% or NT$69.1 trillion. Following in order are the government at 25.6%, enterprises at 9.7%, and finance sector at 0.1%.  If land is reevaluated according to market value and the net assets of enterprise and finance sectors are redistributed by the final ownership, the total net household and non-profit institutions assets would be NT$79.4 trillion or 71.8%.  The government takes up 28.2% (see tables 6 and 7).

(B)2006 land value increased by 3.6 trillion after reevaluation: 2006 registered land calculated to be NT$60.7 trillion based on government announced current land value, which increased by NT$3.6 trillion after reevaluating residential, commercial and industrial lands, which are all with more market circulation and transaction values based on urban land market value data of the Ministry of the Interior.  Households had the most significant increase of NT$1.5 trillion or 41.1%, the government increased by NT$1.4 trillion or 38.4% to rank second, and the following in order are enterprises 15.5%, non-profit institutions sector 3.7%, and finance sector 1.4% (see tables 6 and 7).

(C)Real estate takes up the highest percent of net household assets at 37.2%  The 2006 net household assets is NT$62.8 trillion, with real estate ranking first at NT$23.4 trillion or 37.2%, followed by portfolio and time savings which take up 19.7% and 19.3%, respectively, and debt takes up NT$11.6 trillion or 18.5%.  If land is reevaluated according to market value, and net assets of enterprises and finance sector are redistributed based on the final ownership, household real estate ranks first at NT$24.8 trillion or 34.3%, with portfolio second at NT$20.5 trillion or 28.3%, and the net total assets rise to NT$72.4 trillion (see table 8).

(D)2006 net average household assets NT$8,730,000: Accounting for the 7,363,744  households of the Taiwan area at year-end, the net assets per average household is NT$8,730,000, increased by NT$630,000 of 2005, resulting mainly the financial assets and real estate were increased by NT$480,000 and NT$180,000 respectively, included net foreign assets increased by NT$ 160,000, portfolio and life insurance retirement funds preparation increased by NT$150,000 and NT$110,000 each; the liabilities increased NT$20,000. (see table 8).