The Taiwanese economy will expand at a 4.45% rate during 2025 according to new projections which exceed the previous 3.1% prediction because of rising AI technology export demand. The Directorate General of Budget, Accounting and Statistics predicts exports will increase by 24% during the upcoming year instead of the previous 9% projection.
The strong orders for high-end chips and AI servers produced by Taiwan Semiconductor Manufacturing Co. drive the current gains. The U.S. tariffs on Taiwanese goods will cause growth to decrease to 2.81% in 2026.
The officials described the 20% tariff as short-term while maintaining ongoing discussions with Washington. The inflation rate for 2025 has been revised downward to 1.76% compared to previous projections.
