TAIPEI (Taiwan News) —  Taiwan has been ranked 4th in GDP per capita, surpassing economic rivals South Korea and Japan, thanks to strong global demand for advanced semiconductors.

The IMF projects Taiwan’s per capita GDP will reach NT$1.18 million (US$37,827) in 2025, benefiting from continued economic growth, per Newsweek. National Development Council Minister Yeh Chun-hsien (葉俊顯) in September attributed the increase to the stellar performance of TSMC, the world’s largest contract chipmaker, as well as strong demand from industries such as AI that rely heavily on semiconductors, per CNA. 

This marks the first time in 23 years that Taiwan has surpassed South Korea, and now only trails Singapore, Macau, and Hong Kong, per CNA. Taiwan’s per capita GDP also overtook Japan last year, making it higher than the second-largest economy in Asia for the first time on this measure. 

Brunei ranks seventh, primarily due to its oil and natural gas revenues and a population of just 466,000. Malaysia, China, and Thailand occupy the eighth through 10th positions, respectively.

Per capita GDP, which is obtained by dividing a country’s total GDP by its population, is an economic measure used to track trends in income levels and economic growth across nations, per the World Bank. Higher per capita GDP generally reflects a robust economy with greater fiscal capacity, enabling increased investment in public services such as education, healthcare, and infrastructure, which can improve citizens’ quality of life, per One Money Way. 

However, GDP per capita does not measure a country’s overall standard of living or well-being. It also does not account for factors important to general welfare, such as income distribution, environmental costs, or non-economic aspects of life, per the IMF.