The government also aims to boost gross domestic product per capita to around US$40,000, the cabinet said in a statement. It also aims to stabilise inflation at below 2% and keep the jobless rate to 3.2%-3.5% in its National Development Plan for 2025-2028, the statement said.

The cabinet underscored Taiwan’s growing economic clout by noting that GDP per capita should next year pass that of South Korea, which is also one of the world’s major tech exporters.

Taiwan’s roughly US$800 billion economy weathered the pandemic well and has continued to outperform most rivals, expanding 5.09% on year in the second quarter thanks to exports of high-tech products which underpin the development of artificial intelligence.

Riding this AI fervor, the island’s benchmark stock index surged to a record high in July, though it has retreated from its peak amid global market turmoil and geopolitical concerns. Earlier this month, Taiwan Semiconductor Manufacturing Co, which is a critical supplier to tech giants like Apple Inc and Nvidia Corp, said sales rose 45% in July.

The cabinet said the value of AI output could exceed NT$1 trillion (US$31 billion) by 2026.

The statistics bureau in Taipei will announce the revised growth rate for the second quarter of 2024 and its first forecast for 2025 growth on Friday.