TAIPEI, Taiwan -- Taiwan’s economy expanded at an 8.6% annual rate last year, the fastest pace in 15 years, as its export-focused industries were buoyed by the frenzy over artificial intelligence and a surge of shipments to the U.S..The advanced estimate released by Taiwan’s statistics agency on Friday was much better than economists had forecast.It was the strongest growth rate since 2010.Taiwan set a trade deal earlier this month with U.S.President Donald Trump’s administration.
It lowered U.S.tariffs on imports from the island to 15% from 20% in exchange for pledges of at least $250 billion of investment in the U.S.in areas such as semiconductors and AI.
That could power higher exports, further charging the economy this year, economists say.“We expect AI-related demand to continue underpinning Taiwan’s export performance into 2026, supporting overall economic growth amid sustained global AI investment,” Bank of America economists Xiaoqing Pi and Helen Qiao wrote in a recent note.Popular ReadsMinneapolis ICE shooting updates: Over 3,000 arrested in Minnesota, DHS saysJan 18, 2:39 PMMinneapolis live updates: 'We can always do better,' Noem says2 hours agoWinter storm updates: Dozens dead across US in wake of massive snowfall, deep freezeJan 27, 4:41 PMHowever, growth this year will likely slow since it's building on a high base, economists say.Deutsche Bank estimates Taiwan’s economy will grow 4.8% in 2026.Growing concerns that the AI boom may be a bubble are a key risk given Taiwan's dependence on tech exports.Uncertainty over U.S.
tariffs under Trump are another worry.So are tensions with Beijing.China claims Taiwan, a self-ruled island, as its own territory.
China conducted large-scale military drills around Taiwan in late December, renewing concerns over a possible blockade or seizure by Beijing.
Read More
