Rating agency Fitch Ratings has upgraded Taiwan to 'AA' from 'AA-' with a stable outlook, saying the economy had outperformed peer nations during the coronavirus pandemic.

“The upgrade of Taiwan's issuer default rating (IDRs) reflects the economy's outperformance versus peers through the Covid-19 pandemic, a further strengthening of the external sector, and continued fiscal prudence,” Fitch said.

“Fitch forecasts Taiwan's economy will expand by 6 per cent in 2021, following its growth outperformance of 3.1pc last year,” the agency said in a note.