AI demand drives Taiwan's annual economic growth rate to 7.37%, surpassing China's

The Executive Yuan's Bureau of Budget and Accounting announced that Taiwan's economic growth rate is expected to reach a high of 7.37% in 2025. This figure is due to the contribution of demand for AI, and is the highest level in 15 years.

114 3rd season economic growth rate saar 7.02%, yoy 8.21%; forecast 114 and 115 growth 7.37% and 3.54%

According to the announcement, Taiwan's economic growth rate for the third quarter of 2025 (July to September) is expected to be 8.21%, 0.57 percentage points higher than the forecast as of October 2025. The annual economic growth rate has also been revised upward from a forecast of 4.45% to 7.37%.

This is the highest growth rate in 15 years. According to the Financial Times, at the time, China was recovering from the global financial crisis and its GDP growth rate had reached 10%. This figure is expected to exceed the growth rate of China's economy, and the Financial Times noted that this is 'unusual for a developed country.'

This strong performance is said to be due to exports of electronic devices to meet demand for AI.

Taiwan is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest semiconductor manufacturer, which produces over 90% of the world's most advanced chips. Taiwanese companies also play a key role in the production of servers, PCs, smartphones, and their components.