Taiwan and South Korea outpace others in AI era

The IMF projects Taiwan’s growth to decelerate to 4.3% in 2027 after a peak of 10.7% in 2026, while South Korea’s momentum may ease as global chip demand stabilises. Nevertheless, the semiconductor surge has largely neutralised the negative impact of the Middle East conflict for these exporters.

The report also notes that AI‑related productivity gains are still modest at the macro level. Specific tasks show large efficiency improvements, but the overall economy has not yet felt a transformative boost. Over‑optimistic expectations could slow investment in AI infrastructure if profitability falls short of forecasts.