This year, Taiwan’s economy is expected to continue expanding by 4.8%, placing it among the fastest-growing economies in Asia and outpacing Hong Kong, Singapore and South Korea, says DBS economist Ma Tieying.
Taiwan’s role in AI has evolved into a wealth story, reshaping capital flows across Asia, says James Wey, head of international wealth management at KGI. “Taiwan has benefited tremendously from the global technology sector growth, especially in AI and its associated supply chain,” Wey says, adding that “the growth is likely to continue”.
Taiwan’s economy is expected to grow by 7.2% in 2025, buoyed by the global AI boom despite headwinds from tariff uncertainties and foreign currency volatility under the Trump 2.0 administration. This growth pace is the highest since the post-Global Financial Crisis recovery in 2010 and among Asia’s top three, alongside India and Vietnam. In addition, Taiwan’s per capita GDP is expected to reach US$38,000 ($48,942), overtaking Japan, its former colonial master, and South Korea, its close rival in electronics and manufacturing, for the first time.
