Taiwan’s Directorate-General of Budget, Accounting and Statistics projects that the nation’s GDP per capita will exceed US$40,000 for the first time in 2026, reaching US$41,019. This represents a remarkable leap from US$30,000 to this new milestone in just five years, with Taiwan’s international ranking expected to surpass Japan and South Korea. While this performance boasts economic strength, the primary driving factors behind this growth—New Taiwan Dollar appreciation and population decline—may not necessarily reflect genuine improvements in citizens’ real income.
Jiann-Chyuan Wang, Vice President of the Chung-Hua Institution for Economic Research (CIER), notes that surpassing US$40,000 in GDP per capita signifies Taiwan’s gradual transition toward advanced nation status. However, the industrial structure remains heavily concentrated in semiconductors as well as information and communications technology, with wage growth favoring only select groups. According to data, last year’s per capita income was approximately NT$1.1 million, while the median wage was merely NT$525,000, highlighting the worsening wealth gap. To prevent high-tech dominance while traditional manufacturing and service industries stagnate, Vice President Wang recommends that the government use funding mechanisms and sovereign wealth fund-like instruments to foster emerging industries such as AI and 5G, while promoting cross-sector transformation and deregulation in service industries to attract young talent.
Chih-Yen Tai, Associate Research Fellow at the CIER, analyzes that according to the Directorate-General’s GDP calculation methodology, government and private investment have shown little change in recent years. Other industries lack attractive investment opportunities apart from semiconductors, AI, and other high-tech sectors. Therefore, the rapid rise in GDP per capita is primarily attributed to the strengthening of the Taiwan dollar and declining total population, which passively inflates the figures. In other words, economic growth rates have maintained only a moderate level of approximately 2% to 3%, rather than being the main driver of soaring statistics.
Current economic remedies are no longer applicable. To sustain growth at this new high point in GDP per capita, industries must simultaneously pursue high-end development and internationalization. Only through diversified industrial development and service sector upgrades that address income distribution inequality can Taiwan achieve truly inclusive economic growth that benefits all citizens, beyond merely impressive numbers.
Author: CIER Editorial Team Date: September 8, 2025