(Jan 30): Taiwan’s economy expanded at the fastest pace in 15 years in 2025, buoyed by unquenchable demand for the tech goods needed to develop AI systems.
Gross domestic product (GDP) expanded 8.63% last year from 2024, according to a statement from the statistics bureau in Taipei on Friday. That compares to the 7.5% median estimate in a Bloomberg survey of economists.
Fourth-quarter GDP grew by 12.68%, versus an estimate of 8.75%. That’s the fastest since 1987.
The artificial intelligence buildout is expected to keep Taiwan’s economy humming this year, spurring several financial institutions to raise their forecasts for 2026 to levels above the central bank’s 3.67%. Goldman Sachs Group Inc also recently lifted its prediction to 5.1%, up from 4.4%.
In a signal of confidence in the longevity of the global AI boom, this month Taiwan Semiconductor Manufacturing Co said it was earmarking as much as US$56 billion in capital spending for 2026, a stronger-than-anticipated projection. Asia’s most valuable company also foresees revenue growth of close to 30% this year, faster than the average analyst estimate.
The optimism is also partly due to the US and Taiwan agreeing on a trade deal this month. The pact lowers tariffs on goods from the self-governed island to 15%, down from 20%, and sees Taiwanese firms increase investment and financing for American operations by up to US$500 billion.
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Taiwan’s exports hit record levels in 2025. More than 60% of the shipments, like the advanced chips that are Taiwan’s specialty, were exempt from US duties while the Trump administration conducts a probe into imports of a range of key goods.
Taiwan’s trade surplus with the US also climbed to a record last year. The annual figure was US$150.1 billion — easily more than double the US$64.7 billion the year prior.
Uploaded by Evelyn Chan
