Taiwan economic growth hits 8.63% in 2025, highest in 15 years

Taipei, Jan. 30 (CNA) Taiwan's gross domestic product (GDP) increased an estimated 8.63 percent in 2025 from a year earlier -- its strongest growth in 15 years -- driven by a surge in exports and rising demand for artificial intelligence (AI) applications, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said Friday.

The growth beat an earlier forecast by 1.26 percentage points and surpassed regional peers such as South Korea and Singapore, while Taiwan's per capita GDP reached US$39,477, approaching the US$40,000 mark, DGBAS specialist Chiang Hsin-yi (江心怡) told reporters.

Fourth-quarter GDP growth was estimated at 12.68 percent, a 4.77 percentage-point jump from an earlier projection and a major factor in lifting the full-year growth rate, Chiang said, attributing the strong performance to unexpectedly robust AI-related demand and the absence of U.S. tariffs on semiconductor products, which had initially prompted conservative forecasts.

Exports have been the key driver of growth, but private consumption and investment also contributed, supported by a recovering car market, cash handouts to residents, and active stock trading, she said.

Taiwan's AI and high-performance computing sectors continued to fuel export growth, boosting sales of chips, servers and components, she said.

This momentum helped Taiwan outperform neighboring economies, including China (5 percent), Singapore (4.8 percent), Hong Kong (3.5 percent) and South Korea (1 percent), DGBAS data showed.

Estimated per capita GDP also reflects Taiwan's strong performance, surpassing both Japan (US$34,713) and South Korea (US$35,962) in 2025, Chiang said, explaining that exchange rate gains from a strengthening Taiwan dollar also contributed to the rise.

Looking ahead, the DGBAS said the recently concluded Taiwan-U.S. trade agreement, which lowers tariffs to 15 percent without stacking on top of other trade duties, is expected to support exports and improve competitiveness for traditional industries such as machine tools, bicycles, and hardware.

According to the DGBAS, a new growth forecast for 2026 will be issued on Feb. 13, with analysts expecting an upward revision.