Taipei

As of March 2023, the estimated population of Taipei, Taiwan’s capital and special municipality, was 2,494,813 people. The Taipei-Keelung metropolitan area, sometimes known as “Greater Taipei,” is centered on this vibrant city in Northern Taiwan and also comprises the neighboring cities of Keelung and New Taipei. With a combined population of 7,047,559, this urban conglomeration—which accounts for roughly one-third of Taiwan’s population—ranked 40th most populous urban area worldwide.

The ancient lakebed used mostly by Taipei is surrounded by the little valleys of the Keelung and Xindian rivers. These rivers join along the western edge of the city to create the Tamsui River, a unique topography that has shaped the city’s expansion over time. Taipei’s ascent to prominence as a political, economic, and cultural center has been much aided by this advantageous location.

Taipei’s political center started to take shape when the Qing dynasty decided to seat Taiwan Province at Taipei in 1887. This status was momentarily disrupted under Japanese control from 1895 to 1945. Once more under the Republic of China (ROC), Taipei was the provincial capital following World War II, serving from 1945 until 1956. Since 1949 when it became the national seat of the ROC central government, the city has kept its position as the political center of the country. On July 1, 1967, Taipei’s significance within the national framework was reinforced when it was declared a special municipality in honor of its value.

The significance of the city extends much beyond its political function. Taipei, rising to prominence in many spheres, was named a “Alpha − City” by the Globalization and World Cities Research Network (GaWC). This categorization emphasizes Taipei’s influence on the world economy and its participation in international economic systems. One shining example of Taiwan’s economic might is the high-tech industrial sector of the city, which has been vital for its remarkable economic transformation.

Inextricably connected to the Taiwan Economic Miracle—a period of fast industrialization and economic growth beginning in the 1960s—is Taipei’s ascent to prominence as a worldwide center for technology and electronics. One defining characteristic of this phenomenon was notable foreign direct investment, which drove the city’s expansion into a vibrant center for business, finance, and technology. Currently a creditor economy with one of the biggest foreign exchange reserves in the world—more than US$403 billion as of December 2012—Taiwan is showing the advantages of this economic rebirth.

Notwithstanding events like the Asian financial crisis, the city has shown amazing economic resilience by keeping its annual growth rate roughly at 5%. This consistent growth has coincided with almost full employment and low inflation, producing a stable economic environment. Taipei’s economic output was notable given an amazing US$327 billion GDP as of 2014.

The high GDP per capita numbers highlight Taipei’s economic prowess even more. With its nominal GDP per capita in 2013 ranking fifth in East Asia, the city exceeded big international cities including London and Paris. Though it lags behind Singapore and Hong Kong, Taipei’s GDP per capita in 2015 was US$44,173 when adjusted for Purchasing Power Parity (PPP), putting it in the top echelons of worldwide cities in terms of economic prosperity.

International visitors have noted the city’s economic promise and friendly business environment. Taipei’s appeal to foreign investors and businesspeople is highlighted by The Financial Times ranking of Taipei fourth in terms of business friendliness and second in terms of economic potential (only exceeded by Tokyo) in 2015. Taipei now boasts thirty billionaires, ranking 16th in the world in terms of the count of billionaires, surpassing many other well-known cities thanks in part to its vibrant business environment.

Taipei boasts particularly remarkable technological ability. Taipei ranked fifth most technologically advanced city in the world according to Business Insider in 2017, ranking highest among any Asian city. Further supporting this technological advantage is Taipei’s ranking as the world’s smartest technology city in the IESE Cities in Motion Index 2017. These accolades show the city’s commitment to creativity and its success building a thriving tech industry.

One of Taipei’s varied economy’s key components is tourism. With more than 6.3 million foreign visitors in 2013, the city ranked fifteenth among all the visited cities worldwide. With the notable US$10.8 billion this influx of visitors brought to the city’s economy in the same year, Taipei ranked ninth globally and became the top tourist-earning city among Chinese-speaking cities.

Taipei is kept in constant connection to the rest of the world by two main airports. While Taoyuan International Airport, in neighboring Taoyuan City, handles most of the international flights, Songshan Airport, in the heart of Taipei, runs domestic flights and a few international routes to significant Asian destinations. Taipei’s sophisticated transportation system, which comprises its large metro system and guarantees simple access to these vital air links, helps to further increase the city’s global connectivity.