Taiwan's economy could grow 6% in 2025 amid AI boom: Minister

Taipei, Nov. 13 (CNA) Taiwan's economic growth this year will exceed 5.5 percent, and could reach 6 percent, as the country benefits from its position at the forefront of the global AI boom, Minister Chen Shu-tzu (陳淑姿) of the Directorate-General of Budget, Accounting and Statistics (DGBAS) said Thursday.

Speaking at the Legislature, Chen was asked by opposition Kuomintang lawmaker Lin Te-fu (林德福) if Taiwan's economy faced risks from a potential AI bubble.

In response, Chen said that AI development, which is currently being led by tech giants, is producing stable profits.

The growing number of practical applications for AI, as well as the sustained demand for computing power, imply that it will continue to be profitable, and justifies an optimistic outlook, she said, noting that Taiwan also has a leading role in the AI sector.

According to Chen, the DGBAS estimates that Taiwan's economy grew at a rate of 7.64 percent in the third quarter of this year, 4.73 percentage points higher than the 2.91 percent forecast in August.

This also brought the government's full-year growth estimate to above 5 percent, she said.

Pressed by Lin for a more specific figure, Chen said the DGBAS would adjust its annual growth forecast at the end of November.

"Currently the numbers are trending toward 6 percent. We estimate it will be above 5.5 percent," she said.

Meanwhile, a written report the DGBAS submitted to the Legislature Thursday addressed concerns from lawmakers that the changes brought about by the "AI revolution" will increase the country's wealth gap.

In the report, the agency said the government planned to continue promoting various kinds of subsidies, including those for low-income families and seniors, retired farmers, families with young children, and people with disabilities.

From 2014 to 2025, the government's social welfare budget has grown from NT$421.8 billion (US$13.57 billion) to NT$806.1 billion, or an average increase of 6.1 percent per year, the report said.