《TAIPEI TIMES》 Taiwan on course for fastest growth in years: Academia Sinica

HOME AND ABROAD: In addition to exports, domestic demand is driving GDP growth, with private spendin...…

Academia Sinica Institute of Economics research fellow Lin Chang-ching speaks at a news conference in Taipei yesterday. Photo courtesy of Academia Sinica

HOME AND ABROAD: In addition to exports, domestic demand is driving GDP growth, with private spending projected to rise 3.6 percent, the institute said

By Crystal Hsu / Staff reporter

Taiwan’s economy is on course to record its fastest growth in more than a decade this year as booming global demand for artificial intelligence （AI） infrastructure drives exports, investment and consumer spending, Academia Sinica said yesterday.

The research institute raised its forecast for Taiwan’s GDP growth this year to 10.16 percent, a sharp increase from the 3.71 percent projected in December last year.

“The upgrade reflects strong momentum from both domestic and external demand,” Academia Sinica Institute of Economics research fellow Lin Chang-ching （林常青） told a news conference in Taipei.

External demand is expected to contribute 5.13 percentage points to GDP growth, while domestic demand is forecast to add 5.03 percentage points, he said.

AI has been the economy’s key growth engine, although uncertainties remain over the durability of the technology investment cycle, Lin said.