TAIPEI (Taiwan News) — Taiwan’s economic growth could approach 12% this year as strong AI demand keeps the economy on track, National Development Council Minister Yeh Chun-hsien (葉俊顯) said Tuesday.
Yeh said calls by some US AI industry leaders to slow AI development could cause short-term volatility, but he remained confident in the sector’s long-term growth, per CNA. He said the calls mainly concerned AI model development and software, while opportunities could emerge in cybersecurity.
Yeh said the broader AI trend remained unchanged, noting that TSMC and major server manufacturers had orders extending into next year. He also pointed to record-high exports in August, saying economic growth could exceed the Directorate-General of Budget, Accounting and Statistics’ 11.05% forecast.
Addressing rising tensions in the Middle East and international oil prices above US$100 (NT$3,100) per barrel, Yeh said the main impact would be on prices. He said the government had measures to stabilize prices and noted that CPI growth averaged 1.8% in the first seven months. However, recent agricultural losses from heavy rain could cause a temporary increase.
Yeh acknowledged that the producer price index had risen quickly in recent months and could affect prices next year. The government would monitor price trends, he said, with the impact also depending on developments in the Middle East and global oil prices.
A full-year CPI increase slightly above 2% would be acceptable if economic growth continued to accelerate, Yeh said, per Tai Sounds. Moderate inflation could indicate that the benefits of growth were spreading more widely, while an expected minimum wage increase next year would help workers share in those gains, he added.
