FX.co ★ Taiwan Lowers 2024 Growth Outlook

Taiwan's economic growth for this year is now anticipated to be marginally slower than previously estimated, according to the latest update from the Directorate General of Budget, Accounting and Statistics (DGBAS).

The Gross Domestic Product (GDP) is forecasted to increase by 3.90 percent this year, a slight revision from the 3.94 percent projected in May. Looking ahead to 2025, the real economy is expected to grow by 3.26 percent.

The government attributes this steady growth to the accelerated expansion of AI applications and Taiwan's robust local manufacturing supply chains, which are expected to bolster both exports and investment.

In the second quarter, real GDP saw a quarter-on-quarter growth of 1.16 percent, a minor downward adjustment of 0.03 percentage points from the previous estimate.

On a year-on-year basis, GDP increased by 5.06 percent, just below the preliminary estimate of 5.09 percent.

In terms of consumer prices, the government projects a decrease in inflation to 1.91 percent next year, following three consecutive years of inflation rates exceeding 2 percent.