Taiwan posts longest run of double-digit GDP growth since 1987
Gross domestic product expanded 14.36% in the third quarter from a year earlier.
Taiwan recently experienced its longest consecutive period of double-digit GDP growth since 1987, according to the island's statistics bureau. The country reported a 14.36% expansion in gross domestic product (GDP) for the third quarter compared to the previous year, surpassing the average estimate of 12% from a Bloomberg survey of economists conducted on October 30.
This remarkable growth trend can be attributed to the expanding artificial intelligence (AI) sector in Taiwan, which has been bolstered by key suppliers of tech giants such as Nvidia and Apple. In September, Taiwan's exports surged by nearly 61% to reach a record high of over US$87 billion (S$111.15 billion), exceeding all economists' forecasts.
Taiwan Semiconductor Manufacturing, the world's largest contract manufacturer of advanced chips, also exceeded expectations with a 69% jump in profit for the July-September quarter. Despite growing concerns over the sustainability of the AI investment boom, the rapid economic expansion has positively impacted Taiwan's public finances.
The government has proposed a record NT$3.93 trillion (S$154.02 billion) spending plan for 2027, allowing for increased funding of priorities such as defense, with overall military spending set to exceed 3% of GDP.
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