In 2023, Taiwan witnessed a surge in household wealth, reaching an unprecedented average net worth of NT$18.89 million. This remarkable increase of NT$1.16 million from the previous year was primarily fueled by the robust performance of the Taiwan Stock Exchange. Despite facing economic challenges like weak demand and inventory adjustments, the stock market thrived, with the TAIEX index surging by 26.83% over the year.
One of the key drivers behind this surge was the remarkable rise in stock prices of major companies like TSMC. As a result, households across Taiwan experienced a significant boost in their wealth. Tan Wen-ling, an official from the Directorate General of Budget, Accounting and Statistics, highlighted how the exceptional stock market performance acted as a counterbalance to broader economic slowdowns, enabling households to accumulate substantial wealth.
When considering the recalculated average net worth of households in 2023, factoring in land valued at market prices, real estate emerged as the largest asset category. With an average value of NT$5.76 million, real estate saw a modest increase of NT$40,000. Securities followed, amounting to NT$3.41 million, while time and foreign currency deposits totaled NT$2.38 million, benefiting from rising stock prices and higher interest rates.
The composition of household assets in Taiwan revealed that real estate accounted for 30.5% of total assets, making it the most significant category. Life insurance reserves and retirement funds constituted 21.78%, while securities made up 18.05%. Cash, demand deposits, time deposits, and foreign currency deposits collectively contributed 13.54% and 12.58%, respectively.
While household net worth witnessed a notable growth, financial liabilities also increased. The average domestic liabilities per household rose to NT$2.42 million, driven primarily by higher mortgage loans. This rise in liabilities mirrored the upward trajectory of assets, reflecting a complex financial landscape for households in Taiwan.
It is worth noting that the household structure in Taiwan encompasses not only the applicant and their spouse but also extended family members who share a common residence. The Ministry of Health and Welfare includes direct blood relatives living together within the household framework, ensuring a comprehensive understanding of familial financial dynamics.
Looking ahead, the record high in household wealth signifies a significant milestone for Taiwan’s economic landscape. The symbiotic relationship between stock market performance and household wealth underscores the interconnectedness of financial markets and individual prosperity, shaping the country’s economic trajectory in the years to come.