German media: Taiwan's GDP growth hits 15-year high, per capita GDP nears $40,000
According to data from the Taiwan authorities, Taiwan's economic growth reached 8.6% last year, the fastest in 15 years, with per capita annual GDP approaching $40,000. The AI boom and a surge in exports to the United States have driven the development of Taiwan's export-oriented industries.
The Taiwan authorities announced on Friday, January 30, that the estimated economic growth rate for last year was 8.63%, higher than the original forecast of 7.37% and also higher than 5.3% in 2024, marking the highest since 2010. In 2010, Taiwan's GDP growth rate was 10.3%.
Estimated results also show that Taiwan's per capita GDP last year was $39,477, approaching the $40,000 mark. Taiwan's population is about 23.3 million.
United States becomes Taiwan's largest export destination last year
The authorities pointed out that the bright economic growth was mainly due to the demand for emerging technologies such as artificial intelligence and high-performance computing far exceeding expectations, as well as strong commodity exports.
Taiwan is a major producer of AI servers, computer chips, and precision instruments. Last year, driven mainly by the export of technology-related products, Taiwan's exports increased by nearly 35%, reaching a record high of $640.75 billion. Among them, exports to the United States surged by 78%, accounting for nearly 31% of Taiwan's total exports. With the surge in exports to the United States, the United States has become Taiwan's largest export destination for the first time since 1999. Last year, exports to mainland China accounted for 27% of Taiwan's total exports.
The rapid development of artificial intelligence has also driven leading tech companies in Taiwan to achieve record profits and revenue. TSMC is the world's largest chip foundry and one of the world's most valuable companies, with its main client being NVIDIA (known as "Hui Da" in Taiwan). Additionally, Taiwan's electronics giant Foxconn also produces AI servers for NVIDIA and assembles products for Apple.
What about this year's GDP forecast?
Last quarter, Taiwan's economic growth remained strong, increasing by 12.7% year-on-year. Early this month, Taiwan reached a trade agreement with the Trump administration: Taiwan pledged to invest at least $250 billion in semiconductors and artificial intelligence in the US, in exchange, the US will reduce tariffs on Taiwan's imports from 20% to 15%. Economists believe this will further boost export growth and further stimulate Taiwan's economy this year.
In a recent report, U.S. Bank economists Xiaoqing Pi and Helen Qiao wrote: "We expect that demand related to artificial intelligence will continue to support Taiwan's export performance through 2026, promoting overall economic growth against the backdrop of continued global investment in artificial intelligence."
However, economists say that due to the high base, Taiwan's GDP growth rate may slow down this year.
Deutsche Bank expects Taiwan's economy to grow by 4.8% in 2026. Given Taiwan's reliance on technology exports, people are increasingly concerned that the AI boom may be a bubble, which is a key risk.
Sources: DW, AFP, AP
Original: toutiao.com/article/1855784725915851/
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