Taiwan trade surplus hits record USD 23.6 billion amid AI demand

Taiwan’s economy is experiencing significant growth driven by robust exports and strong banking sector performance. In September, Taiwan’s trade surplus reached a record USD 23.6 billion, fueled by a 60.9% year-on-year surge in exports linked to global demand for AI-related hardware. Despite this massive surplus, the Taiwan dollar has remained relatively stable against the US dollar, as the central bank has intervened to manage currency volatility amid broad US dollar strength and foreign portfolio outflows.

Parallel to the trade surge, Taiwan’s domestic banking sector reported strong results for August. Loans from local banks increased by NTD 362.7 billion, the second-highest for that month on record, while deposits rose by NTD 838.2 billion, marking a record high for August. The Financial Supervisory Commission attributed the growth in loans to corporate working capital needs and personal mortgage demand. Additionally, the banking sector's pre-tax earnings for the first eight months of the year reached a record NTD 485.37 billion, a 19.7% increase compared to the same period last year.