Taiwan revised its 2025 economic growth forecast upwards to 3.29%, a slight increase from the previous estimate of 3.26%, despite potential trade disruptions posed by the anticipated return of US President-elect Donald Trump.
This updated projection was announced by the statistics bureau in Taipei on Friday. The bureau also adjusted the growth forecast for 2024 to 4.27%, from an earlier estimate of 3.9%.
Third-quarter growth for Taiwan was reported at 4.17% year-on-year, surpassing the government’s earlier estimate of 3.97%. These figures emerge as Trump’s potential policies cast uncertainty over Taiwan’s economic landscape, particularly because of the island’s significant trade relationships with China and the United States.
This week, Trump threatened to impose an additional 10% tariff on Chinese goods as a punitive measure for China’s alleged failure to curb the flow of drugs to the United States.
Taiwan’s economy has been among Asia’s best-performing this year, driven by global demand for its high-tech products. Leading AI companies such as NVIDIA, Microsoft Corp and OpenAI are increasingly relying on Taiwanese companies for chip manufacturing, server construction and device cooling solutions.
This robust economic performance allowed Taiwan’s central bank to keep its benchmark interest rate at a 16-year high, increase reserve requirements for banks and implement measures to cool the market overheated real estate.
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