TAIPEI (Taiwan News) — Taiwan’s economic growth in 2025 is likely to reach 3.02%, driven by stronger-than-expected demand for artificial intelligence products and moderate optimism over US tariffs, the Taiwan Institute for Economic Research said Friday.
TIER became the second think tank this month to raise its growth forecast above 3%, following the Chung-Hua Institution for Economic Research, which projected 3.05% GDP growth in a report released July 17.
Despite uncertainty over pending US tariffs on imports from Taiwan, the economy likely grew 5% in the first half of the year, per UDN. The full-year 3.05% forecast reflects a 0.11 percentage point increase from Chung-Hua’s April estimate.
TIER said Taiwan’s economy is expected to expand rapidly in the first half of the year, but slow to under 1% growth in the second half. Private investment and consumer confidence may weaken later in the year, the institute warned.
Still, the outlook for the second half of 2025 may not be as weak as previously feared. TIER expects global demand for AI-related products to remain strong, while car sales could recover once uncertainty over tariffs is resolved.
Jul. 25, 2025 14:23
Matthew Strong
Taiwan News, Staff Writer