TAIPEI (Reuters) -Taiwan’s economy is expected to grow faster in 2025 than previously forecast, the statistics agency said on Friday, as the island continues to reap the benefits of strong demand for tech and artificial intelligence-related products.
Taiwan’s gross domestic product is now expected to expand 4.45% this year, according to the official forecast from the Directorate General of Budget, Accounting and Statistics, higher than the 3.1% it forecast in May.
Exports this year from Taiwan, a major producer of chips powering the AI surge, are predicted to expand by 24.04%, the agency said, upgrading sharply a previous forecast of 8.99%.
The optimistic outlook comes even after U.S. President Donald Trump imposed a 20% tariff on Taiwan goods.
Taiwan’s government has said the 20% tariff is “temporary” as it continues to negotiate with the U.S. for more favourable rates.
Gross domestic product expanded by a revised 8.01% in the second quarter from a year earlier, compared with a preliminary 7.96%, the statistics agency said.
It also lowered the forecast for the consumer price index (CPI) to 1.76% from 1.88% previously.
(Reporting by Faith Hung and Liang-sa Loh; Editing by Ben Blanchard and Kate Mayberry)
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