Sign in Subscribe
Economic growth

Taiwan's Economic Growth Forecast to Stay Above 3% Despite US Tariffs

Strategic Insights

— 1 min read

Taiwan's economy is expected to maintain a growth rate above 3% in 2025, despite uncertainty over US tariffs, according to the Chung-Hua Institution for Economic Research. This forecast comes as most observers had predicted a slower growth rate due to the lack of an agreement with the US on tariff levels. The institution's projection is driven by strong demand for AI products and a surge in exports in the first half of the year, which is expected to offset a potential slowdown in the second half due to the tariffs.

Key Takeaways:

  • Taiwan's economic growth is forecast to be 3.05% in 2025, driven by strong demand for AI products and a surge in exports.
  • Export figures for the whole year are likely to increase 13.74% from last year.
  • The first half of 2025 saw a growth figure of 5.17%, while the second half is expected to slow down to 1.08% due to US tariffs.
  • The fourth quarter of 2025 is likely to post 0.66% growth.
  • The Chung-Hua Institution expects 2.45% economic growth and 1.85% inflation for 2026.
  • Taiwan's consumer price index is likely to stay below 2%, at 1.89%, due to the strength of the Taiwan dollar.
  • The combination of US tariffs and the exchange rate is a concern for exporters.

Statistics:

  • 3.05%: Taiwan's economic growth forecast for 2025
  • 5.17%: Growth figure for the first half of 2025
  • 1.08%: Expected growth rate for the second half of 2025
  • 0.66%: Expected growth rate for the fourth quarter of 2025
  • 13.74%: Expected increase in export figures for the whole year
  • 2026: Expected economic growth of 2.45%
  • 2026: Expected inflation of 1.85%
  • 1.89%: Expected consumer price index for Taiwan in 2025

Sources:

  • Chung-Hua Institution for Economic Research
  • CNA (Central News Agency)

Read more