In 2007，the growth rate of Taiwan’s foreign trade fell，private consumption and investment demand went up，output growth of agriculture and services industry increased，while industrial growth declined slightly and the money supply somewhat slowed down，price index became higher，employment conditions remained stable. The cross-straits economic and trade relationship continued to maintain rapid development. In 2008，Taiwan’s economy will face following situations：the island’s political evolution，changes of the cross-straits economic and trade relationship，the United States’ Subprime Mortgage Crisis and other internal and external factors. Taiwan’s economy is expected to remain a low-speed growth of around 4%.