Ministry of Finance: Moody's Affirms Taiwan's Sovereign Rating at Aa3, Praises Sound Fiscal Management
The Ministry of Finance announced on the 3rd that Moody's has affirmed Taiwan's sovereign credit rating at Aa3 with a 'stable' outlook, recognizing its sound fiscal management and strong fiscal performance. Moody's cited Taiwan's high income levels, robust governance, leadership in advanced chip manufacturing, and AI-driven economic growth as key factors. Taiwan's real GDP growth reached 8.8% in 2025, and government debt-to-GDP ratio fell to approximately 24%.
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- 📰 Published: June 3, 2026 at 21:11
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(Central News Agency, Taipei, 3rd) The Ministry of Finance announced today that international credit rating agency Moody's has confirmed the maintenance of Taiwan's sovereign credit rating at Aa3, a level set in 2022, with a 'stable' outlook, recognizing Taiwan's sound fiscal management and strong fiscal performance.
In a press release issued this evening, the Ministry of Finance stated that Moody's indicated the rating reflects Taiwan's high income levels, strong government governance framework, and robust external position. Taiwan's leadership in advanced chip manufacturing is a key driver of economic resilience, supporting strong economic growth and competitiveness. In 2025, benefiting from strong demand for artificial intelligence (AI) applications and expanded investment in the high-tech industry, the real economic growth rate reached 8.8%.
The Ministry of Finance stated that Moody's believes export growth remains the main engine of economic expansion, and Taiwan's solid leadership in advanced chip manufacturing, coupled with substantial capital investment and technological advantages, will sustain growth momentum into 2026.
The Ministry of Finance pointed out that Moody's mentioned Taiwan's fiscal strengths and policy effectiveness are key pillars supporting the rating. The fiscal framework is governed by the Public Debt Act, with the government strictly adhering to borrowing limits and minimum debt repayment requirements, supporting a continuous decline in debt levels. Benefiting from the strong profitability of the technology sector, fiscal revenue performance has exceeded expectations. In 2025, the debt-to-GDP ratio for all levels of government in Taiwan fell to approximately 24%, and it is projected to remain between 20% and 25% in the future, significantly lower than other peer economies.
Furthermore, Moody's stated that Taiwan's debt interest payments account for only about 2.4% of government fiscal revenue, total borrowing needs are low, and are supported by a strong domestic capital market.
The Ministry of Finance stated that in the face of rapid changes in the international economic situation and geopolitical risks, it will strictly adhere to fiscal discipline, implement debt control, and continue to use prudent and flexible fiscal policies to strengthen fiscal capacity and promote economic growth, laying a resilient foundation for Taiwan's sustainable development. (Editor: Lin Kelun) 1150603
In a press release issued this evening, the Ministry of Finance stated that Moody's indicated the rating reflects Taiwan's high income levels, strong government governance framework, and robust external position. Taiwan's leadership in advanced chip manufacturing is a key driver of economic resilience, supporting strong economic growth and competitiveness. In 2025, benefiting from strong demand for artificial intelligence (AI) applications and expanded investment in the high-tech industry, the real economic growth rate reached 8.8%.
The Ministry of Finance stated that Moody's believes export growth remains the main engine of economic expansion, and Taiwan's solid leadership in advanced chip manufacturing, coupled with substantial capital investment and technological advantages, will sustain growth momentum into 2026.
The Ministry of Finance pointed out that Moody's mentioned Taiwan's fiscal strengths and policy effectiveness are key pillars supporting the rating. The fiscal framework is governed by the Public Debt Act, with the government strictly adhering to borrowing limits and minimum debt repayment requirements, supporting a continuous decline in debt levels. Benefiting from the strong profitability of the technology sector, fiscal revenue performance has exceeded expectations. In 2025, the debt-to-GDP ratio for all levels of government in Taiwan fell to approximately 24%, and it is projected to remain between 20% and 25% in the future, significantly lower than other peer economies.
Furthermore, Moody's stated that Taiwan's debt interest payments account for only about 2.4% of government fiscal revenue, total borrowing needs are low, and are supported by a strong domestic capital market.
The Ministry of Finance stated that in the face of rapid changes in the international economic situation and geopolitical risks, it will strictly adhere to fiscal discipline, implement debt control, and continue to use prudent and flexible fiscal policies to strengthen fiscal capacity and promote economic growth, laying a resilient foundation for Taiwan's sustainable development. (Editor: Lin Kelun) 1150603