TAIPEI (TVBS News) — The Ministry of Finance (財政部) announced on Wednesday (Aug. 6) that Fitch Ratings (惠譽), a major credit rating agency, affirmed Taiwan's long-term sovereign credit rating at "AA" with a stable outlook. The Ministry said that this rating highlights the country's strong external creditor position, prudent fiscal management, and competitive business environment as key supporting factors.
Fitch Ratings pointed to Taiwan's fiscal surplus, which accounted for 0.4% of GDP in 2024, as an indicator of financial health. The agency forecasts a slight fiscal surplus for 2025 due to robust tax revenue performance across all government levels. The Ministry emphasized that Taiwan's public debt exceeding one year will decrease from 31% of GDP in 2024 to 27% in 2027.
This reduction reflects low fiscal deficits and steady economic growth, with the government committing to using budget surpluses for additional fiscal expenditures and to curb debt growth. The Ministry also praised Taiwan's adherence to the Public Debt Act (公共債務法), which limits public debt to 50% of the country's GDP, as a cornerstone of maintaining good medium-term fiscal discipline.
However, the Ministry cautioned that several challenges loom on the horizon. Global economic growth is expected to slow in 2025, due to the negative impacts of rising trade barriers, geopolitical risks, and extreme climate events. The ministry stated that it will continue implementing prudent and flexible fiscal policies to address industrial and social development needs, optimize fiscal governance, and maintain fiscal discipline.