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…
By Julia Bergström and Alex Myslinski President Lai Meets Japan Representative President Lai Ching-te met with Mitsuo Ohashi, chairperson of the Japan-Taiwan Exchange Association, Japan’s representative office in Taiwan, on August 27. The purpose of the meeting was to further solidify the strong partnership and bilateral friendship between Taiwan and Japan. Since Ohashi assumed his…
By Julia Bergström and Alex Myslinski the Ministry of Finance (MOF). The ministry attributed the growth to strong global demand for AI applications. Exports for the month totaled US$39.94 billion, a growth of more than 3% year-over-year (YoY), while imports increased 16.2% YoY to US$35.1 billion. MOF said that while the growth came amid a…
