Taiwan's economic growth rate last year hit a record high for the first time in 15 years. Per-capita gross domestic product (GDP) also neared $40,000, surpassing Korea for the first time in 22 years.
According to AFP, Bloomberg, and the Central News Agency (CNA) on the 30th, Taiwan's statistics authority, the Directorate-General of Budget, Accounting and Statistics, provisionally tallied the 2025 real GDP growth rate at 8.63%. It was the highest figure since 2010 (10.25%). It topped the 2024 growth rate of 5.3% and exceeded both the government's forecast (7.4%) and the median economist estimate compiled by Bloomberg (7.5%). The Directorate-General of Budget, Accounting and Statistics said this pace of growth was higher than China (5%), Singapore (4.8%), Hong Kong (3.5%), and Korea (1.0%).
Analysts said global demand for building artificial intelligence (AI) infrastructure lifted exports of semiconductor and information and communications technology (ICT) products, driving growth. Specialist Chang Hsin-yi at the Directorate-General of Budget, Accounting and Statistics said, "Orders related to AI grew far more strongly than expected," and noted, "Robust goods exports were the key engine, and private consumption and investment were not bad."
The fourth-quarter growth rate last year came to 12.68%, beating forecasts by Bloomberg (8.75%) and Reuters (8.5%). The Directorate-General of Budget, Accounting and Statistics said the figure could be revised within two to three weeks and that the growth rate outlook will also be updated on Feb. 13.
Per-capita GDP also jumped. According to the agency's provisional estimate, Taiwan's per-capita GDP last year was $39,477. Citing IMF data, the Directorate-General of Budget, Accounting and Statistics said it surpassed Japan ($34,713) and Korea ($35,962). There was also a report citing data that estimated Korea's per-capita GDP at $36,107.
Export indicators back the growth story. According to the Ministry of Finance, last year's exports rose 34.9% from a year earlier to $640.8 billion, a record high. They also surpassed the previous record high of $479.4 billion in 2022. Imports increased 22.6% to $483.6 billion, and the trade surplus surged 95% to $157.1 billion.
Major financial institutions are raising their forecasts for Taiwan's 2026 growth rate one after another. Goldman Sachs recently lifted its projection to 5.1% from 4.4%.
Bloomberg said on the 15th that optimism also grew after the United States and Taiwan reached a trade agreement to lower the reciprocal tariff to 15% and include $250 billion in investment by Taiwanese corporations and $250 billion in government credit guarantees.