The global AI race is supercharging Taiwan’s economy. But many don’t feel better off

Night view of Taipei 101 and the Taipei skyline in the distance behind vegetation and a mountain trail from Taipei Mountains in Taipei, Taiwan, on December 14, 2021. Jimmy Beunardeau/Hans Lucas/AFP/Getty Images

For proof that an economy can thrive even under constant military threats from a powerful neighbor and amid US President Donald Trump’s sweeping global tariffs, look no further than Taiwan.

The self-ruled democracy has logged roughly 8% economic growth for two consecutive quarters, a rare achievement for a developed economy and one that is projected to push its 2025 GDP growth close to 7.4%, even surpassing China’s.

“Taiwan’s economy has clearly been one of the best performing economies in the world, particularly over recent quarters,” said Jason Tuvey, an economist at Capital