Taiwan Economy Surpasses 11% Growth on AI Gains and Childbirth Benefits

Taiwan’s economic performance this year has demonstrated strong momentum. According to data revealed by President Lai Ching-te in his National Day address, Taiwan’s economic growth rate is expected to exceed 11 percent, while its global competitiveness has risen to fourth place. This achievement not only highlights Taiwan’s strengths in technological innovation and manufacturing but also underscores the government’s successful implementation of policies in the digital economy and artificial intelligence (AI) sectors. Over the past few years, with semiconductors and chip manufacturing at its core, Taiwan has continued to expand its influence in global supply chains. Now, the focus is shifting further toward AI and digital services to maintain competitiveness in emerging industries.

In his address, President Lai outlined the "AI Dividend" policy, which plans to distribute a universal payment of NT$10,000 per person starting next year. This measure aims to benefit all citizens through the direct distribution of economic gains generated by artificial intelligence, thereby promoting social equity. AI technology has already shown significant productivity improvements in various fields, including manufacturing, healthcare, finance, and agriculture. Distributing the value created by AI to the public will help narrow the wealth gap and stimulate domestic demand. This policy also aligns with international calls for "AI sharing," emphasizing that technological advancements should not be reserved for a few companies but should instead contribute to the well-being of the entire population.

Simultaneously, President Lai announced the promotion of a "Growth Allowance" program providing NT$5,000 monthly to children aged 0 to 18. The initiative aims to alleviate the burden of child-rearing for families and improve the quality of life for the younger generation. Taiwan has long faced challenges related to an aging population and declining birth rates. This allowance serves as a crucial policy tool for the government in adjusting labor market dynamics and demographic structures. By injecting direct funds, the government hopes to encourage young families to invest more in education and daily living, thereby enhancing the quality of human resources and the nation’s overall competitiveness.

On the defense front, President Lai emphasized that increasing defense investment is a necessary measure for "deterrence against war." Taiwan currently faces security pressures from a neighboring major power, particularly with the increasing frequency of military deployments and intelligence activities in maritime and aerial domains. Strengthening defensive capabilities not only safeguards territorial integrity but also helps maintain regional stability. President Lai stated that Taiwan will continue to enhance its indigenous R&D and equipment upgrades, and cooperate with allies to ensure sufficient self-defense and response capabilities in the event of potential conflicts.

Finally, President Lai articulated his views on US-China relations in the address. He expressed a positive stance toward the United States and China managing their competition through dialogue to reduce the risk of conflict. As a critical component of cross-strait relations, Taiwan also hopes that the two major powers will resolve their differences peacefully, avoiding spillover effects on Taiwan’s economy and security due to geopolitical tensions. This diplomatic posture reflects Taiwan’s commitment to peace and stability on the international stage, while also demonstrating keen insight into the global economic and security environment.

(Source: Central News Agency)