FX.co ★ Taiwan Lifts 2025 Growth Forecast Amid Strong Tech Export Surge

Taiwan unexpectedly revised its economic growth forecast for 2025, elevating it to 3.6% from the previous 3.14%, buoyed by a robust performance in the first quarter. This improvement is primarily attributed to a remarkable surge in exports, particularly within the technology sector, as Taiwan moves to preempt potential U.S. import tariffs. During this period, the economy expanded by 5.37% year-on-year, marking the most accelerated growth rate since the first quarter of 2024. This surge has been driven by strong production, exports, and investments, largely fueled by the amplified demand for AI technologies. Wang Tsui-hua from the Directorate General of Budget, Accounting, and Statistics commented, "Expectations for the first half have been adjusted upwards, though the second half presents more uncertainties." On a quarter-on-quarter basis, the economy witnessed a seasonally adjusted growth of 9.67%. This momentum follows U.S. President Trump's decision to halt plans for extensive tariffs, facilitating continued diplomatic negotiations. Meanwhile, Taiwan's technology companies have reported significant demand, mostly propelled by advancements in AI applications.