The pandemic has been tough for bricks and mortar retail

Since the first COVID-19 infection in Wuhan, Taiwan confirmed its first infection on 21st January 2020. Relying on the SARS experience in 2003 and early intervention by Taiwan’s government to contain the spread of the coronavirus, and despite its geographic proximity to China and frequent people-to-people exchanges with the PRC, Taiwan shas shown resilience in combating Covid-19 confirming 440 cases and seven deaths, as of 20th May.

Compared with other countries where strict measures were imposed, including city lockdowns and the closure of non-essential retail services, schools, offices and shops in Taiwan are operating as normal with some measures still in place, such as mask use, temperature checks and social distancing, which have inevitably had an impact on retailing.

While the pandemic has hit Taiwan’s economy, success in the COVID-19 fight resulted in positive GDP growth in the first quarter of 1.54%, an outstanding achievement. Private consumption shrank most, especially the catering and tourist industries. As stay at home guidance become a useful way to prevent infection, Taiwan’s government has positive expectations of GDP growth of 1.53% in 2020, however, the IMF is more pessimistic adjusting downward its forecast by 6 percentage point(ppts) to -4% owing to the global economic fallout which will damage Taiwan’s export-dependent economy.