Taiwan's excess savings forecast to top NT$11 trillion in 2027: DGBAS

Taipei, Aug. 17 (CNA) Taiwan's excess savings are expected to reach a record NT$11 trillion (US$345 billion) in 2027, as the current AI boom boosts the country's exports and current account surplus, according to the Directorate General of Budget, Accounting and Statistics (DGBAS).

With excess savings expected to reach a record high, the excess savings rate is forecast to rise to a new high of 29.49 percent in 2027, up from an estimated 25.13 percent in 2026, DGBAS data showed.

Excess savings refers to the difference between a country's gross domestic savings and gross domestic investments and largely serves as an indicator of idle funds.

From 2020 to 2023, Taiwan's excess savings hovered around NT$3 trillion, but strong global demand for AI applications beginning in 2024 boosted the country's exports, paving the way for a rise in the current account surplus and an increase in excess savings.

The current account primarily measures a country's exports and imports of goods and services.

Taiwan's excess savings topped NT$4 trillion for the first time in 2024 and rose further to NT$5.6 trillion in 2025. The DGBAS said excess savings are expected to surpass NT$8 trillion in 2026, reaching NT$8.4 trillion.

DGBAS Department of Statistics chief Tsai Yu-tai (蔡鈺泰) said it was no surprise that excess savings increased after a spike in the country's current account surplus.

However, Tsai said an increase in excess savings does not necessarily have negative implications, referring to concerns over the accumulation of idle funds in the country.

Tsai said that to meet robust global demand for AI products, many Taiwanese high-tech manufacturers have been keen to expand production, using disposable funds for investments and growth.

Because of increased investment, Tsai said, the DGBAS last week revised down its forecast for Taiwan's excess savings to NT$8.4 trillion from an estimate of NT$9 trillion made in May after taking increased investment into account.

In addition, the DGBAS has forecast gross domestic investment will hit NT$8.74 trillion in 2026, up from NT$7.28 trillion in 2025, and rise further to a record NT$9.22 trillion in 2027.

The increase in excess savings simply reflects savings growing faster than domestic investment, Tsai said.

Amid optimism over AI development, Tsai said he expects domestic investment to continue growing and further boost the economy.

The DGBAS has raised Taiwan's gross domestic product (GDP) growth forecast for 2026 to 11.05 percent, a 39-year high, citing stronger-than-expected exports, investment and consumption.

Taiwan's GDP is expected to grow a further 6.04 percent in 2027, according to the DGBAS.