Taiwan’s Economy Surges Due to Boost in Exports and Growing Demand for AI Technology

Taiwan’s economy, heavily reliant on exports, is expected to have grown at a faster pace in the first quarter of the year. This growth was driven by an increase in exports and strong demand for technology used in artificial intelligence applications. According to a Reuters poll of 18 economists, Gross Domestic Product (GDP) is projected to have expanded by 5.65% compared to the same period last year.

In the first quarter, Taiwan’s exports surged by 12.9% year-on-year, significantly higher than the 3.4% growth seen in the fourth quarter. This boost in exports was led by Taiwan’s tech-heavy industries, particularly chipmakers, who capitalized on the rising demand for AI technology. As a result, the manufacturing sector in Taiwan has seen a resurgence, leading to low unemployment rates.

The preliminary GDP data for Taiwan will be released in a statement with limited commentary, followed by revised figures with more detailed analysis and future projections. Despite this growth, analysts predict that the second quarter will see slightly slower growth with around 3.5%, before picking up again towards the end of the year. The government has raised its forecast for full-year growth in 2024 to 3.43%, up from an initial prediction of 3.35%.

Taiwan plays a crucial role in the global technology supply chain and serves companies like Apple and Nvidia, while housing the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSM). TSM has also reported strong sales due to increased demand for semiconductors used in data centers and automobiles as well as other electronic devices which contributed significantly to Taiwan’s economy during this period of time .

Overall outlook for Taiwan’s economy remains positive buoyed by strong export performance and growing demand for AI technology which have contributed significantly to its rapid expansion during this period of time