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 Economics. “Many people expected Taiwan’s economy to benefit from the sort of AI boom, but maybe many underestimated to what extent it would do.”
