TAIPEI (Taiwan News) — Taiwan's GDP per capita has surpassed Japan this year and is expected to overtake South Korea.
On Aug. 15, the National Development Council (NDC) announced that its National Development Plan for 2025-2028 had been approved by the Cabinet. At a press conference that day, National Development Council Minister Paul Liu (劉鏡清) said Taiwan's per capita GDP is expected to surpass Japan's this year and could also pass South Korea's.
The NDC's 2024 economic growth target will be between 3.77% and 3.91%. From 2025-2028, the council has set an average economic growth rate of 2.8% to 3.6%, with a target per capita GDP of US$39,000 (US$1,200) to US$42,000 by 2028.
In addition, the plan aims for an average unemployment rate of 3.2% to 3.5% and an average core consumer price index inflation rate of below 2% over the next four years.
Regarding per capita GDP, the minister said the goal is for Taiwan's per capita GDP to surpass that of South Korea starting in 2025, with the gap continuing to widen. Taiwan's per capita GDP is expected to exceed US$40,000 by 2027, and its nominal GDP could approach one trillion US dollars by 2028.
Liu said that after surpassing Japan and South Korea, his dream is for Taiwan to surpass Israel, as Israel is similar in size to Taiwan. According to International Monetary Fund (IMF) data, Israel's 2023 per capita GDP was approximately US$55,000.
The minister said economic growth is driven by factors including the differences in imports and exports, private investment, government investment, and private consumption. Liu said in 2024, private investment in Taiwan will exceed NT$5 trillion for the second time in history.
Liu predicted that given the major investment projects underway, the growth numbers are expected to remain healthy through 2025. Looking at the combination of government investment, private investment, and imports and exports, an economic growth rate of 2.8% to 3.6% is considered a healthy and feasible goal, said Liu.
According to IMF 2024 data, with a GDP per capita of US$34,430, Taiwan has surpassed Japan's per capita GDP of US$33,140 and South Korea's at US$34,160. China trails behind these countries with a per capita GDP of US$13,400.
