Taiwan Raises Growth Outlook

(RTTNews) - Taiwan's economy is expected to grow more than previously estimated this year on robust foreign demand for artificial intelligence and emerging technology applications.

The economy is projected to expand 4.45 percent this year, which was revised up from 3.1 percent estimated earlier, the Directorate General of Budget, Accounting & Statistics said Friday. The government expects real private fixed capital formation to increase 9.89 percent this year as leading domestic semiconductor firms are expanding their capacity to meet the ongoing AI-driven demand. Exports are forecast to advance 23.74 percent.

Growth in private consumption is seen at 0.85 percent as tariff-related uncertainties weigh on auto purchases.

The outlook for inflation was lowered to 1.76 percent from 1.88 percent.

In 2026, the Taiwanese economy will grow 2.81 percent and inflation will moderate to 1.64 percent on falling global commodity prices, the statistical office said. In the second quarter of 2025, economic growth accelerated on sharp increase in exports of goods and services, preliminary data showed.

Real gross domestic product grew 12.78 percent sequentially, slightly weaker than the initial estimate of 12.89 percent but much faster than the 6.16 percent growth posted in the first quarter.

On a yearly basis, GDP climbed 8.01 percent, following first quarter's revised 5.45 percent expansion. The second quarter growth was revised up from 7.96 percent estimated on July 31.

On the expenditure-side, private consumption moved up 0.49 percent on higher expenditures on food and beverages and services such as entertainment and transportation.

Real exports of goods and services surged 35.02 percent driven by strong demand for artificial intelligence and emerging technologies. At the same time, imports advanced 31.29 percent.

Gross capital formation expanded 4.87 percent in the second quarter.