Taipei: Taiwan's excess savings are anticipated to reach an unprecedented NT$11 trillion (US$345 billion) in 2027, driven by the ongoing AI boom which is bolstering the nation's exports and expanding its current account surplus. According to Focus Taiwan, Accounting and Statistics (DGBAS), this growth is set to elevate the excess savings rate to a new high of 29.49 percent in 2027, compared to an estimated 25.13 percent in 2026. Excess savings, a measure of the gap between a country's gross domestic savings and its gross domestic investments, indicates the presence of idle funds. Between 2020 and 2023, Taiwan's excess savings were around NT$3 trillion. However, with the surge in global demand for AI applications starting in 2024, the country's exports have surged, leading to an increase in the current account surplus and consequently, excess savings. Taiwan's excess savings surpassed NT$4 trillion for the first time in 2024 and continued to grow, hitting NT$5.6 trillion in 2025. The DGBAS projects that th ese savings will exceed NT$8 trillion in 2026, reaching NT$8.4 trillion. Tsai Yu-tai, head of the DGBAS Department of Statistics, noted that the rise in excess savings aligns with the spike in the current account surplus, though it doesn't inherently imply negative outcomes despite concerns over the accumulation of idle funds. To address the growing global demand for AI products, Taiwanese high-tech manufacturers have been investing in expanding production, utilizing available funds for growth. This increase in investment prompted the DGBAS to revise its forecast for Taiwan's excess savings to NT$8.4 trillion from the NT$9 trillion estimate made in May, considering the increased investment. Additionally, DGBAS forecasts gross domestic investment will reach NT$8.74 trillion in 2026, up from NT$7.28 trillion in 2025, and continue to rise to a record NT$9.22 trillion in 2027. The growth in excess savings highlights the acceleration of savings compared to domestic investment, Tsai explained. In light of optimi stic AI development trends, Tsai anticipates sustained growth in domestic investment, which is expected to further enhance the economy. The DGBAS has subsequently increased Taiwan's GDP growth forecast for 2026 to 11.05 percent, marking a 39-year high, owing to stronger-than-expected exports, investment, and consumption. For 2027, Taiwan's GDP is projected to grow by an additional 6.04 percent.