Taipei: Taiwan’s economic growth for this year is anticipated to exceed 5.5 percent and could reach 6 percent, driven by the country’s prominent position in the global AI expansion, as stated by Minister Chen Shu-tzu of the Directorate-General of Budget, Accounting and Statistics (DGBAS) on Thursday. Speaking at the Legislature, Chen addressed concerns raised by opposition Kuomintang lawmaker Lin Te-fu regarding potential risks of an AI bubble affecting Taiwan’s economic stability.
According to Focus Taiwan, Chen expressed confidence in the stability of profits resulting from AI development, which is currently being spearheaded by major tech companies. The increasing practical applications of AI and the ongoing demand for computing power suggest continued profitability, justifying a positive outlook for Taiwan’s economy. Chen emphasized Taiwan’s leading role in the AI sector, which contributes to this optimistic forecast.
Chen highlighted that the DGBAS estimates Taiwan’s economy grew at a rate of 7.64 percent in the third quarter of this year, which is significantly higher than the 2.91 percent forecast made in August. This upward trend has led the government to revise its full-year growth estimate to above 5 percent. When pressed by Lin for a precise figure, Chen indicated that the DGBAS would update its annual growth forecast by the end of November, with current trends suggesting a figure trending toward 6 percent.
In a written report submitted to the Legislature, the DGBAS addressed concerns regarding the potential increase in the country’s wealth gap due to changes brought about by the “AI revolution.” The agency outlined the government’s plan to continue promoting various subsidies, including those for low-income families, seniors, retired farmers, families with young children, and people with disabilities. The report also highlighted the growth of the government’s social welfare budget from NT$421.8 billion (US$13.57 billion) in 2014 to NT$806.1 billion in 2025, reflecting an average annual increase of 6.1 percent.