TAIPEI (TVBS News) — Taiwan's economy is set for robust expansion this year, driven largely by surging demand in the technology sector, according to a report delivered to legislators on Monday (March 24). Chen Shu-tsu (陳淑姿), director of the Directorate-General of Budget, Accounting and Statistics (DGBAS, 行政院主計總處), presented the optimistic economic outlook during her appearance before the Legislative Yuan's Finance Committee, highlighting the island's strengthening position in global tech markets.
Taiwan's economy is projected to grow by 3.14% in 2025, according to Chen's forecast. This growth trajectory is being fueled primarily by increasing global demand for artificial intelligence (AI) applications and a wide range of information and communication technology products, sectors where Taiwan maintains competitive advantages in manufacturing and innovation.
The economic momentum has been building steadily, with Chen noting that Taiwan experienced 2.9% year-on-year growth in the fourth quarter of 2024, propelled largely by advancements in artificial intelligence technologies. National income statistics published on Feb. 26 revealed impressive economic indicators: exports surged by 8.90%, capital formation jumped by 19.20%, and private consumption increased by 2.49% during the same quarter, demonstrating balanced growth across multiple economic sectors.
Taiwan's economic performance has been exceptional in regional comparisons. The island's 4.59% economic growth rate last year outpaced several key Asian competitors, including Singapore's (新加坡) 4.4%, Hong Kong's (香港) 2.5%, and South Korea's (南韓) 2.0%. This robust growth also significantly exceeded the global average of 2.8%, positioning Taiwan as a standout performer in the international economic landscape.
Taiwan's semiconductor industry continues to be a primary engine for economic expansion. Chen explained that major semiconductor manufacturers are aggressively investing in advanced manufacturing processes and high-end packaging technologies to meet the growing demand for AI-capable chips. These strategic investments are substantially contributing to domestic capital formation and creating a virtuous cycle of technological advancement and economic growth.
Beyond the tech sector, Taiwan's economy is benefiting from renewed activity in transportation. The DGBAS noted that aviation companies are expanding their fleets to accommodate increasing cross-border travel and freight demand, representing another significant area of investment growth. Meanwhile, Taiwan's stable employment conditions are promoting wage increases, which enhance household disposable income and maintain strong consumer spending patterns, further reinforcing the positive economic outlook.
