Economy of Taiwan

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GDP

2025: GDP growth of 8.6% and up to $850 billion

Taiwan's GDP increased by 8.63% in 2025, the most significant growth in 15 years. For comparison, a year earlier, the increase was 5.27%. The relevant data are reflected in the report of the State Statistical Agency released on January 30, 2026.

According to Statista, in 2024, Taiwan's GDP was $782.44 billion. Thus, in 2025, the figure reached about $850 billion. The key driver of the state economy is the development of advanced technologies - primarily the rapid introduction of artificial intelligence. Taiwan, as noted by Reuters, plays a key role in the global supply chain of AI products for companies such as Nvidia and Apple. In addition, the world's largest contract chipmaker, TSMC, is based in the country.

Taiwan's GDP increased by 8.6% over the year

Taiwan's GDP growth rate increased during 2025. So, in the first quarter, an increase of 5.54% was noted on an annualized basis, in the second - 7.71%, in the third - 8.21%, in the fourth - 12.68%. Moreover, the dynamics in the last quarter of 2025 turned out to be the highest quarterly growth in 38 years - from the third quarter of 1987.

Thanks to higher-than-expected external demand driven by the introduction of new technologies such as AI, real exports of goods and services grew by 32.18% in 2025 compared to 2024. Imports increased by 27.24% year-on-year.

According to estimates by the State Statistical Agency of Taiwan, in 2025, domestic demand contributed only 2% to the country's GDP growth. The external market accounted for 6.63% in the total result. Exports and industrial production have seen solid growth throughout the year, while retail sales have slowed. Analysts believe that the volume of exports will remain high in 2026.^[1]

2024

4.3% rise thanks to chip manufacturing

At the end of 2024 GDP Taiwan , it increased by 4.3% - this is the maximum growth in three years. Significant positive dynamics is largely due to the production of chips, including for systems. artificial intelligence Economic indicators are provided in the report of the General Directorate for Budget, Accounting and Statistics (Taiwan DGBAS), published on January 24, 2025.

It is noted that in the first quarter of 2024, Taiwan's annual GDP growth was at 6.64%. In the second quarter of the same year, an increase of 4.89% was noted. The third and fourth quarters showed gains of 4.17% and 1.84%, respectively. Thus, during 2024, the growth of the country's economy gradually slowed down.

Taiwan

Thanks to the sustainable development of artificial intelligence, high demand for information and communication products and microchips, Taiwan's exports rose 8.54% year-on-year in 2024, it said. At the same time, imports increased by 11.62%.

The rate of increase in consumer spending in 2024 was recorded at 2.79% against 7.9% in 2023. Year-on-year government spending increased by 2.5%, while a year earlier growth was 0.42%. Investments in fixed assets increased by 12.13% against a decrease of 10.13% at the end of 2023. It is said to increase investments in equipment, construction and intellectual property products.

Analysts stress that Taiwan's economy could face uncertainties in 2025, driven by the president's new policies. USA Donald Trump According to Taishin Investment Advisory analyst Kevin Wang, this could largely affect the investment plans of Taiwanese companies.^[2]

Growth of 6.51% in the first quarter due to the take-off of exports of equipment for AI

Taiwan's economy is growing at its fastest pace since 2021 thanks to an artificial intelligence boom.

GDP grew by 6.51% in the first quarter, exceeding economists' forecasts of 6%.

Exports of AI equipment have been a major driver of growth.

2023: The fall in GDP by 3.02% in the first quarter is an anti-record since 2009.

GDP in the first quarter of 2023 fell by 3.02% compared to the same period last year. Economists polled by Bloomberg had forecast a 1.25% drop.

Taiwan's economy shrank at its fastest pace since 2009, recording a second straight quarter of declines as falling global chip demand shows no signs of weakening.

Taiwan fell into recession due to falling global demand for consumer electronics and problems in major global markets.

The tech sector makes up 30% of Taiwan's economy, and its factories produce nearly two-thirds of the world's computer chips.

2022

Taiwan GDP up 2.4%

On January 18, 2023, the General Directorate for Budget, Accounting and Statistics of Taiwan (DGBAS) published data on GDP growth in the country. It is reported that the pace of development of the state economy has slowed down.

At the end of 2022, Taiwan's GDP increased by 2.43%. This is the minimum increase since 2016, when the figure rose 2.17%. The result did not meet the expectations of analysts who said an average increase of 3.06%. The reduction in the pace of development of the country's economy is due to the difficult geopolitical situation. Fast-growing inflation on a global scale and aggressive interest rate hikes by the world's largest banks have hurt demand in all regions and led to food inventory adjustments in many industries, it said. The outbreak of COVID-19 in China also had a negative impact on consumption and interrupted production activities.

Taiwan's exports (products and services) rose 2.57% in 2022, while imports increased 4.59%. Consumer spending climbed 3.36% year-on-year. The public sector recorded a 2.69% increase in costs.

DGBAS documents said investment in manufacturing equipment and intellectual property continues to grow, however investment in transport equipment has decreased. Taiwan's imports were affected by slowing global demand. In addition, a decrease in commodity prices was recorded, which increased pressure on the cost of imports into the country. However, after the easing of restrictions associated with the COVID-19 pandemic, activity in the consumer sector increased. At the beginning of 2023, according to the Taiwan Ministry of Economy, manufacturers sought to adjust product supplies: this is expected to lead to a decrease in inventory.^[3]

GDP estimate - $0.8 trillion

GDP size forecast - $0.84 trillion

2021: GDP size - $0.79 trillion

2019: GDP $590 billion or $24,600 per capita

Gold and foreign exchange reserves

2025: 12th in gold reserves: 423.63 tonnes

2021: 6th in terms of gold and foreign exchange reserves: $544,900 million for September

Sovereign Wealth Fund

Inflation

2022: Record inflation since 2008

Consumer inflation in Taiwan hit its highest level in 14 years (3.59%) in June.

National debt

2023: State debt - 27% of GDP

Industrial production

2023: Decline of 14.5% in March amid weak global demand

Industrial production in Taiwan decreased by 14.5% in March 2023 compared to a year earlier, the decline was the largest reduction since May 2009 - immediately after the global financial crisis - for any month except January and February (these months are often distorted by the Lunar New Year holiday).

Semiconductor manufacturing

2025: Taiwan rejects U.S. request to move chip production to America

In September 2025, Taiwan rejected a US request to move chip production to America to cover half of its demand. Vice Premier Cheng Li-jun said Taiwan did not give such obligations and would not agree to this condition.

Taipei wants to focus on negotiating a Section 232 investigation that affects more than 70% of Taiwanese exports to the U.S., including semiconductors.

US Secretary of Commerce Howard Lutnik noted that the goal of the proposal is to reduce dependence on Taiwan Semiconductor Manufacturing Co. and its ecosystem, which accounts for the bulk of the world's advanced chip production.

The US has already imposed a 20% tariff on imports from Taiwan (higher than for Japan and South Korea), although semiconductors are so far exempt from the measure.

2024: $16 billion earmarked for semiconductor industry

2022

Supporting the Trend of Innovative Manufacturing Transit in the United States

TSMC has established a complete supply chain for the closed-loop production of semiconductors. TSMC's net profit for the 12 months at the end of September 2022 increased by 45% compared to the previous same period^[4], and in 2023, analysts from the Institute for Information Industry predict the growth of the Taiwanese chip industry by 1,^[5]

Nevertheless, to maintain profitability, Taiwanese manufacturers are forced to support the trend of transit of innovative production in the United States. So, at the opening ceremony of the TSMC plant in Phoenix, Arizona, in December 2022, the founder of the company M. Chang announced the growth of investments to $40 billion and the launch in 2026 of the second factory for the production of chips 5-nm and 3-nm.

Taiwan is counting on US funding for its "friendship" projects. However, there is a great risk that large manufacturers such as Intel will impose on the Chinese the struggle to diversify production and at the same time attempt to lure TSMC personnel. In addition, the company's management admits that the transit of capacity will entail an increase in the cost of products by 55%^[6]. Thus, the issue of maintaining profitability for Taiwanese chipmakers not only persists, but will also worsen as large projects are implemented by global competitors.

Taiwan accounts for 22% of global chip manufacturing capacity

2021: TSMC makes up to 92% of the world's high-tech chips

Taiwan-based TSMC (Taiwan Semiconductor Manufacturing Company) is the world leader in semiconductors; in 2021, it produced up to 92% of the world's high-tech chips^[7].

Communication

Main Article: Communications (Taiwan Market)

Information Technology

Taiwan IT Market

Main Article: Taiwan IT Market

Information security

Ransomware Viruses in Taiwan

Main article: Ransomware viruses (ransomware) in Taiwan

Foreign trade

2025

Taiwan becomes largest importer of Russian naphtha, which the country needs to produce chips

Taiwan became one of the world's largest buyers of Russian naphtha in the first half of 2025. The country purchased products worth $1.3 billion during this period. Average monthly imports grew almost sixfold from 2022 to the first half of 2025. For the entire period, Taiwan acquired 6.8 million tons of Russian naphtha for $4.9 billion. The volume is 20% of Russia's exports and makes the island the third in the world in terms of purchases. This is stated in a report by the Center for power and Clean Air Research, created in conjunction with other analytical companies. The results of the study were reported to RBC on October 1, 2025. Read more here

Poland becomes largest buyer of drones from Taiwan

In the summer of 2025, Poland became the largest buyer of drones from Taiwan, absorbing almost 60% of Taiwan's drone exports, which by August had grown to $32 million. The United States remains the second largest importer with $7 million.

Strong demand has forced Taiwanese manufacturer Ahamani to plan a factory in Poland.

Close cooperation with Taiwan helps Poland increase production and reduce dependence on Chinese components. Farada Group and FlyFocus import engines and batteries from Taiwan, allowing them to mitigate the effects of Chinese restrictions and expand exports to the United States and Ukraine.

Poland's proximity to Ukraine allows it to test drones on the battlefield, killing Russian soldiers, and build up experience to further develop the industry.

2024

Export of digital products - $29 billion

US once again the biggest consumer of exports from Taiwan after 20 years of China leadership

In the spring of 2024, the United States again became the largest destination for Taiwanese exports after decades during which China topped this list.

Exports of goods from Taiwan to the United States in 2024 amounted to $42 billion, imports - $116 billion, which led to a US trade deficit of $74 billion.

Renewed export growth amid AI boom

In March 2024, Taiwan's exports grew at the fastest pace in two years as shipments of computer equipment at the heart of the global AI boom rose more than 400%.

2023

Reduced export orders due to lower demand in the US and EU

Taiwanese export orders fall at the end of 2023 amid lower demand in the United States and Europe.

Reduced supply of chipmaking machines to China due to US pressure

According to data from the Taipei Ministry of Finance, in April 2023, due to pressure from USA Taiwan, Taiwan sent China Hong Kong 151 million chipmakers to and, dollars which is 26% less than a year earlier.

Despite the improvement from the March fall of almost 34%, this is still the 10th month in a row of supply cuts.

Strong decline in exports due to low demand for semiconductors

Taiwan's export orders fell by the largest amount in March 2023 since the 2009 global financial crisis, as global demand for semiconductors shows no signs of improvement.

2022: China is the biggest export destination

2021

2nd in the world in terms of electronics exports with an 11% share

Export of high-tech products exceeded $400 billion

At the end of January 2022, data from Taiwan the Ministry of Economy were released, according to which in 2021 local manufacturers received export orders for high-tech products worth more than $400 billion, which corresponds to 59.41% of total exports. This segment of foreign supplies grew by 22.9% on an annualized basis.

The volume of export orders for high-tech products in 2021 amounted to $193.07 billion for the market information technology (IT) and network/communication devices, an increase of 17.4% compared to 2020. For electronic components/devices and semiconductors, it amounted to $207.40 billion, an increase of 28.5% on an annualized basis. This reflects the effect of the transformation of Taiwan's economic structure, the National Development Council said. states

Taiwanese semiconductor manufacturers continue to withdraw from China and invest in Taiwan, telecom operators continue to create infrastructure-networks, 5G photovoltaic power plants and offshore wind farms, according to a government report, according to which investment in fixed capital of Taiwan in 2022 will grow by 2.99% on an annualized basis.

In order to cope with the global economic restructuring in the country after the crisis of the 19th century, the government of Taiwan seeks to turn the state into a center of high-tech production and advanced processes. Developing semiconductors using 5G and artificial intelligence technologies, driving integrated hardware and software production and attracting investment from international equipment manufacturers and various other material suppliers.

The head of the Statistics Department of the Ministry of Finance of Taiwan, Beatrice Tsai, noted that the high growth can be explained by the recovery of the global economy, steady demand for technical gadgets, as well as rising prices for raw materials and an increase in consumer spending associated with holidays and new technical products. Tsai added that exports of information and communication/video and audio devices, base metals and vehicles reached an all-time high in October 2021, and exports of cars and plastic/rubber products became the second largest in Taiwan's history.^[8]

Export growth to a record $446 billion

Taiwan's exports in 2021 rose to a record $446 billion thanks to growing demand for technological products and components.

2018: Clothing exports - $692 million

Unemployment

2020: Unemployment rate - 3.9%

Incomes of the population

2025: 37.3 millionaires per 1,000 adults in the country

2023: Minimum wage - $800

2022:765 thousand millionaires in the country

Consumption

2023: Poultry meat is the most consumed type of meat

2019: Poultry meat is the most consumed type of meat

Notes