
Macroeconomic Brief – May 2025
Taiwan’s economy stays resilient in early 2025, but U.S. tariff threats and a cooling housing market cloud the outlook.
Taiwan’s economy stays resilient in early 2025, but U.S. tariff threats and a cooling housing market cloud the outlook.
Taiwan’s economy showed steady growth in March 2025, driven by strong semiconductor exports and investment momentum, but rising costs and looming U.S. tariffs have dampened consumer confidence and export optimism.
Taiwan’s economy continues to expand in early 2025, driven by strong semiconductor exports and AI demand, but concerns over potential U.S. tariffs and a cooling real estate market have tempered optimism. With GDP growth projections slightly revised downward and trade policies in flux, policymakers and businesses are closely watching global demand and supply chain shifts.
Taiwan’s economy showed signs of recovery in late 2024, with GDP growth rebounding to 1.8% YoY, driven by steady private consumption and expansion into green technology. However, challenges persist in 2025, as consumer confidence dips amid global uncertainties and new U.S. trade policies, prompting Taiwan’s government to implement measures supporting affected businesses.
By Nikki Dong and Alex Myslinski Lai Embarks On South Pacific Tour President Lai Ching-te on November 30 departed for his first overseas trip since taking office in May. His itinerary, lasting through December 6, includes stopovers in Hawaii and Guam en route to visiting the Marshall Islands, Tuvalu, and Palau, Taiwan’s three diplomatic allies in…
By Nikki Dong & Alex Myslinski Growth Forecasts Rise, Exports Boom The International Monetary Fund projects Taiwan’s economic growth rate this year to be around 2.2%, indicating a cautiously optimistic outlook as Taiwan navigates external economic pressures and domestic recovery initiatives. The Directorate General of Budget, Accounting and Statistics (DGBAS) forecasts a growth rate of…
By Nikki Dong and Alex Myslinski Taiwan Celebrates National Day President Lai Ching-te’s National Day speech on October 10 highlighted Taiwan’s commitment to democracy, resilience, and regional peace. He reiterated Taiwan’s stance on sovereignty, advocating for cooperation with international allies to ensure security and stability in the Indo-Pacific region. At the ceremony, President Lai , the…
By Nikki Dong and Alex Myslinski Production, GDP Forecast Up Taiwan’s industrial production rose 12.25% year-on-year (YoY) in Q3, driven by strong demand for AI chips, servers, and iPhone camera lenses, according to the Ministry of Economic Affairs. Manufacturing output increased 13% YoY. Semiconductor output surged 23.77%, while computer and optoelectronics production hit record highs. AI…
By Nikki Dong and Alex Myslinski U.S. House Passes Pacific Partnership Act The U.S. House of Representatives unanimously passed an act aiming to strengthen cooperation with Taiwan and the Pacific Islands Forum (PIF) on September 9. The Pacific Partnership Act, introduced by U.S. Representative Ed Case (D-HI), requires the President and Secretary of State to…
By Nikki Dong and Alex Myslinski Export Orders Continue to Rise Export orders in August rose for the sixth consecutive month, reaching US$50.2 billion, driven by strong demand for AI chips, cloud-based servers, and new iPhone inventory replenishment, the Ministry of Economic Affairs (MOEA) reported. Orders increased 9.1% year-on-year (YoY) in August, with total orders for…