Taiwan Projects up to 6% Growth in 2025 as AI Demand Accelerates
Taiwan’s economy is expected to grow by more than 5.5% in 2025 and may reach as high as 6%, buoyed by the island’s strategic position at the forefront of the global artificial-intelligence (AI) boom, according to Directorate‑General of Budget, Accounting and Statistics (DGBAS) Minister Chen Shu‑tzu.
When questioned by a legislator from the Kuomintang about whether Taiwan’s economy faces risks associated with a possible AI bubble, Minister Chen reassured that AI development—currently led by major tech firms—is yielding consistent profits. She emphasized that rising commercial applications of AI and sustained demand for computing power underpin an optimistic economic outlook and reinforce Taiwan’s competitive role in the sector.
Data show that Taiwan’s economy expanded by 7.64% in the third quarter of this year, significantly above the 2.91% forecast made in August.
In light of this performance, the DGBAS will revise the full-year growth forecast later this month. “Currently the numbers are trending toward 6%. We estimate it will be above 5.5%,” Minister Chen stated.
Addressing concerns that the “AI revolution” could widen the country’s income gaps, the DGBAS submitted a written report to the legislature outlining government plans to continue promoting social subsidies. These include support for low-income families, seniors, retired farmers, households with young children, and people with disabilities. The report noted that Taiwan’s social welfare budget grew from NTD421.8 billion in 2014 to NTD806.1 billion in 2025, representing an average growth rate of 6.1% per annum.
