Taiwan has revised its 2569 GDP forecast upwards from 9.64% to 11.05%, driven by surging demand for AI chips and servers. Attention is also focused on a possible interest rate hike by the central bank in September.
On August 14, 2569, at 15.18:XNUMX a.m., Bloomberg News reported that Taiwan's economy is on track for double-digit growth for the first time since 2553, driven by soaring global demand for chips and servers for artificial intelligence (AI). This supports the strong growth of exports and investment in one of the world's most important semiconductor hubs.
Taiwan's Statistics Bureau revealed on Friday (August 14) that it has revised upward its 2569 gross domestic product (GDP) growth forecast to 11.05% from the previous estimate of 9.64%, accelerating from the 8.76% expansion in 2568.
If the economy grows as projected, it would mark Taiwan's first double-digit expansion in 16 years, making it likely to be one of the most prominent major economies this year, amid accelerated investment in AI infrastructure by both the United States and China.
The main driving force comes from Taiwan's continued strong demand for high-tech products, particularly semiconductors and servers used for AI systems, which directly benefit from global competition and investment in artificial intelligence.
One sign reflecting this strength is TSMC, Taiwan's largest chip manufacturer, which reported a 45% increase in sales in July. The company is a key chip supplier to Nvidia and Apple.
Previously, TSMC had also revised upward its revenue forecasts and capital expenditure plans for this year, reflecting confidence that the demand for AI-related chips will continue to grow strongly until 2570 and beyond.
Compared to other Asian countries that have also benefited from the AI trend, Taiwan's economy is clearly showing faster growth potential. Economists expect South Korea's economy to expand by around 3.3% this year, even though it is also being driven by the upward cycle of its chip industry.
Besides exports and technology, rapid economic expansion, coupled with the Taiwanese stock market trading near all-time highs, has boosted domestic consumption. Recent official data indicates that the private consumption index has increased at its fastest rate since the third quarter of 2023.
However, the overheating economy is increasing pressure on Taiwan's central bank, as inflation remains above its watchful 2% threshold, leading markets to speculate that the central bank may adopt a tighter monetary policy after keeping its policy interest rate unchanged for the longest period since 2562.
Hyosung Kwon, an economist specializing in South Korea and Taiwan at Bloomberg Economics. expected The central bank in Taiwan may raise interest rates by 0.125%. Or 12.5 basis points at the September quarterly monetary policy meeting.
This overview reflects how AI is becoming a key engine of Taiwan's economy, not only driving the semiconductor industry and exports, but also impacting the stock market, domestic consumption, and potentially leading to a shift in monetary policy in the future.
refer : bloomberg.com
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