TAIPEI (Taiwan News) — Taiwan’s economy is projected to be one of Asia’s fastest-growing in 2025 after the Asian Development Bank sharply raised its outlook for the country in its latest “Asian Development Outlook” report.

The bank lifted its forecast for Taiwan’s 2025 GDP growth from 5.1% to 7.3%, and its 2026 projection from 2.3% to 4.0%. The new figure is the biggest upward revision among the 46 “emerging Asia” members covered in the report and ranks second only to Vietnam’s 7.4% growth estimate, per UDN.

ADB attributes the stronger view on Taiwan to the global artificial intelligence cycle, which it expects to keep driving demand for chips and other electronics at least through mid-2026. 

Taiwan’s role as a key semiconductor hub has already shown up in the trade data, with October exports jumping 49% year-on-year and helping push high-income tech exporters’ shipments up 22%. The bank also expects household subsidies and higher defense spending to reinforce domestic demand as tech-sector gains filter through to consumers.

For developing Asia as a whole, ADB now sees growth of 5.1% in 2025, up from 4.8% in its previous forecast, and 4.6% in 2026.

The lender nevertheless warns that tariff tensions linked to US “reciprocal” measures, uncertainty over sector-specific duties on products such as branded medicines and semiconductors, and the risk of sharp asset-price corrections could derail exports and investment.