Key facts
- Taiwan's economy is forecast to grow 11.05% in 2024, the fastest pace in nearly four decades.
- The upgraded forecast is driven by strong demand for AI chips and technology.
- Taiwan Semiconductor Manufacturing Co. is a key player in supplying AI chips.
- Exports are projected to see their fastest growth since 1976 in 2026.
- Inflation is expected to remain slightly above the central bank's target in 2026.
Taiwan's economy is poised for its most significant expansion in nearly four decades in 2024, with the statistics agency significantly upgrading its gross domestic product growth forecast to 11.05%. This upward revision is primarily attributed to the surging demand for artificial intelligence technology and chips.
Statistics minister Chen Shu-tzu emphasized the robustness of the economic growth and the critical importance of closely monitoring AI development for Taiwan's future. The agency's forecast indicates that the current year's expansion could be the fastest since 1987, when growth reached 12.75%. The revised forecast surpasses the 9.64% prediction made in May.
Looking ahead, the agency anticipates exports to grow by 41.07% in 2026, a pace not seen since 1976. Taiwan, home to Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chip manufacturer, plays a pivotal role in supplying AI chips to major tech firms like Nvidia and Apple.
The agency also projected a 2026 consumer price index of 2.07%, slightly above the central bank's 2% target. Analysts suggest this inflation outlook, coupled with strong economic growth, reinforces expectations that Taiwan's central bank will maintain its current policy rate through the end of the year. The central bank's next rate-setting meeting is scheduled for September 17.