Taiwan Economic Research Institute: "Taiwan to Achieve 3.85% Economic Growth This Year Thanks to AI Boom"

A Taiwanese think tank has revised Taiwan's economic growth rate for this year upward to 3.85%, driven by the AI (artificial intelligence) boom.

According to Taiwanese media such as United Daily News on the 26th, the Taiwan Institute of Economic Research (TIER) raised its forecast for Taiwan's GDP growth rate this year to 3.85%, up 0.56 percentage points from 3.29% in April. TIER cited the global AI boom and the expansion of advanced semiconductor processes, packaging, and testing production facilities within Taiwan's semiconductor industry as reasons for better-than-expected private investment and trade.

[Image source=AFP Yonhap News]

Sun Mingde, head of TIER's Economic Forecasting Center, said that investment related to AI servers is expected to increase further, and that traditional industries will gradually recover in the second half of the year, maintaining overall stable economic growth.

Sun predicted that private consumption growth this year will be around 2.92%, supported by improved performance in retail, food service, and tourism sectors, stable employment, and a booming stock market. Earlier this month, Chuo Lung-tai, Premier of Taiwan's Executive Yuan, had forecast Taiwan's economic growth rate for this year at 3.94%.