Soaring demand for AI is boosting both exports and investment, prompting the
Directorate-General of Budget, Accounting and Statistics to sharply raise
Taiwan's 2025 economic growth forecast to 7.37 percent from its August
forecast of 4.45 percent.

The GDP growth rate was increased on the back of upward revisions to exports,
imports, private consumption, and private investment for the full year.

According to the DGBAS's latest forecast, merchandise exports are expected to
reach US$625 billion this year and US$664.4 billion next year, up 6 percent
and 10 percent, respectively, from previous projections.

If the forecast holds, it would mark Taiwan's fastest growth rate in 15
years, after 2010's 10.25 percent.

The DGBAS is projecting 2026 economic growth to be at a healthy rate of 3.54
percent despite the high 2025 base. A stats official said the 2026 forecast
was conservative, as it factors in uncertainty over potential US tariffs or
other trade restrictions that may not come to pass.

CNA_JvW