Small Country of Only 36,000 Km² Boosts Its Economy with Electronics Exports and Strong Global Demand for AI, Projecting Growth Higher Than China's

Small Country of Only 36,000 Km² Boosts Its Economy with Electronics Exports and Strong Global Demand for AI, Projecting Growth Higher Than China’s

Written by Romário Pereira de Carvalho

Published on 02/12/2025 at 12:41

Updated on 02/12/2025 at 12:48

Imagem: Ilustração

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Taiwan Elevates Projections After Strong Rise in Exports and Higher Demand for AI Infrastructure, Consolidating the Best Economic Pace in 15 Years

Taiwan revised its economic growth projection for 2025 upward and now expects an expansion of 7.37%. The update came as global demand for artificial intelligence continues to support electronic exports, which remain the main driver of the local economy.

The country recorded a real GDP increase of 8.21% in the third quarter compared to the same period last year. The pace was driven by a 32% jump in technology exports.

Advance Above Expectations

The performance observed in the three months up to September 30 exceeded the estimate made a month earlier by 0.6 percentage points.

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Therefore, the result marked the best quarter since mid-2021, when computer consumption surged during the global lockdown and the shortage of semiconductors boosted Taiwanese production.

The Financial Times reported that the government stated that if the annual forecast is confirmed, Taiwan will grow faster than China, something uncommon among developed economies.

Additionally, it would be the largest advance since 2010, a period when the country recovered from the global financial crisis.

Role of Hardware Giants

Although there are concerns about a possible bubble in the AI sector, companies like TSMC and Foxconn indicate that the demand for servers remains strong.

This movement occurs because the accelerated development of AI technologies requires increasingly robust infrastructure.

The statistics agency emphasized that the long-term momentum of the sector is strengthening. According to the agency, governments in various countries are promoting sovereign AI strategies, which increases demand for advanced components.

Taiwan’s Projections for 2026 Also Rise

Even with uncertainties associated with U.S. tariff policies, the growth estimate for 2026 has been revised. Now, the expectation is for an increase of 3.54%, above the previously calculated 2.81%.

The agency explained that Taiwan’s industrial chain is comprehensive and competitive because it concentrates specialized suppliers of essential equipment for AI. Moreover, the scenario favors continuous hardware orders.

Uneven Performance Among Sectors

The strong performance of electronics contrasts with traditional segments of the Taiwanese economy. The statistics agency states that part of the exports from these sectors is suffering from global oversupply.

Private consumption also advanced little. It grew 1.19% in the third quarter compared to the annual period, signaling a slower recovery in the domestic market.

With information from Financial Times.

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Small Country of Only 36,000 Km² Boosts Its Economy with Electronics Exports and Strong Global Demand for AI, Projecting Growth Higher Than China’s

Taiwan Elevates Projections After Strong Rise in Exports and Higher Demand for AI Infrastructure, Consolidating the Best Economic Pace in 15 Years

Advance Above Expectations

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Small Country of Only 36,000 Km² Boosts Its Economy with Electronics Exports and Strong Global Demand for AI, Projecting Growth Higher Than China’s

Taiwan Elevates Projections After Strong Rise in Exports and Higher Demand for AI Infrastructure, Consolidating the Best Economic Pace in 15 Years

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The German economist Wolf-Peter Schill has no doubts: “Electric cars are already far superior to cars with internal combustion engines.”

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