TAIPEI (Taiwan News) — Taiwan’s AI surge is powering exports and investment, pushing economic growth close to 6% this year, the Directorate-General of Budget, Accounting, and Statistics said Thursday.
DGBAS Minister Chen Shu-tzu (陳淑姿) told lawmakers that full-year GDP expansion is expected to reach at least 5.5%, per CNA. She said it could edge higher, fueled by the country’s role in the global AI ecosystem.
Chen made the remarks during a Legislative Yuan Finance Committee session, where lawmaker Lin Te-fu (林德福) raised concerns about overvaluation in AI-related investments, per Anue. Lin said global markets have begun discussing the possibility of an AI bubble.
Chen dismissed those worries, saying major tech companies are maintaining strong profits as AI applications and demand for computing power continue to expand. “Taiwan holds a leading position in AI, and that’s a positive driver for our economy,” she said.
She noted that Taiwan’s GDP surged 7.64% in the third quarter, far exceeding the DGBAS’ earlier forecast of 2.91%. The sharp rebound has prompted the agency to revise its full-year outlook upward.
Lin cited the Taiwan Institute of Economic Research’s upgraded forecast of 5.94%, suggesting growth might exceed 6%. Chen confirmed that the agency’s revised estimate, due later this month, would likely be close to that figure.
Lin also cautioned that while this year’s performance is robust, next year’s growth projection remains below 3%. He said the slowdown could reflect a cooling in the electronics sector.
Chen countered that the weaker forecast is due to this year’s unusually high base, not a sectoral downturn. She said traditional industries are continuing to invest, while the government’s special budgets will help firms adjust to global tariff changes.
Lawmakers also raised questions about whether the AI revolution could widen Taiwan’s wealth gap. The DGBAS report said the government has expanded social welfare programs to cushion vulnerable groups.
Chen said policies promoting salary transparency and encouraging wage hikes are also key to ensuring growth benefits are widely shared. “We aim to strengthen both economic momentum and social inclusion,” she added.
