TAIPEI (Taiwan News) — Directorate General of Budget, Accounting and Statistics Minister Chen Shu-tzu (陳淑姿) appeared before the legislature’s financial committee on Monday reporting that full-year economic growth will reach 3.14%.

Chen said according to the latest data, the economic growth rate in the fourth quarter of last year was 2.9% year-on-year. Chen said this was due to continued demand for AI applications and information and communication products. Furthermore, year-end festivals and tourism led private consumption to grow 2.49%, per UDN.

Taiwan's economic growth rate in 2024 was 4.59%, higher than Singapore's 4.4%, Hong Kong's 2.5%, and South Korea's 2%. Meanwhile, the global average GDP growth was 2.8% last year.

DGBAS said a forecast by Oxford Economics for this year said US tariffs would have a limited impact on some economies with the global economy growing by 2.6%. Furthermore, the International Monetary Fund predicts that world trade volume will grow 3.2% this year, slightly lower than last year's 3.4%.

Chen predicted Taiwan’s economy would fare better than other countries due to AI as the demand for computing power remains strong. Furthermore, a complete industrial supply chain will provide Taiwan with many advantages and boost its export momentum.

In terms of domestic demand, semiconductor manufacturers continue to expand advanced processes and high-end packaging and testing capacity in response to AI business opportunities. Airlines will also increase their purchase of aircraft in response to cross-border tourism and cargo demand, which further supports domestic investment growth.

Chen said a stable employment market is conducive to continued wage growth, contributing to household disposable income. More income and continued growth in cross-border tourism will maintain consumption momentum further supporting economic growth.