TAIPEI (Taiwan News) — The Directorate-General of Budget, Accounting, and Statistics (DGBAS) said Taiwan’s economic growth was 3.9% in Q2, down from 3.94% in Q1.

According to the agency’s economic report published Friday (Aug. 16), the total export volume for the year has been revised to US$5.8 billion (NT$186.7 billion). However, the agency said it expects investment momentum and consumer spending to sustain a 3.26% economic growth rate in 2025, per CNA.

The agency explained that semiconductor manufacturers are expanding advanced manufacturing processes and high-end packaging to meet the demand for AI. Additionally, several international companies have announced increased investment in Taiwan, such as setting up research and data centers, it said.

DGBAS Department of Statistics head Tsai Yu-tai (蔡鈺泰) said although exports are below expectations, they are not weak, and the agency remains optimistic about the AI impact. However, he commented that there is uncertainty regarding the pace of AI development, future demand, growth rate, and shipment conditions.

Additionally, DBGAS reported the average disposable income per household was NT$1.13 million, a 2.5% increase from 2022. The income gap between households narrowed by 6.12 times, marking the best performance in four years, it added.

On Thursday (Aug. 15), the Cabinet approved the National Development Council’s (NDC) national development plan for 2025-2028, setting various macroeconomic goals. For example, one of the goals is to maintain the household disposable income Gini coefficient at no more than 0.35.