Taiwan’s economy is projected to grow 3.1 percent in 2025 on the strength of reviving demand for electronic products and expanding high-speed computing and artificial intelligence applications, Academia Sinica said Dec. 23.
According to AS, Taiwan’s annual growth rates for real exports and imports of goods and services in 2025 are forecast at 6.53 percent and 7.17 percent, respectively, as the country’s increasingly important role in the AI hardware supply chain drives a sustained rise in foreign trade. However, the institution cautioned that U.S. tariff policies may pose uncertainties for Taiwan’s export performance.
As for private investment, AS said the real annual growth rate is estimated at 5.46 percent due to robust demand for automation, AI-driven opportunities and low-carbon development trends, along with increasing investments from international corporations in Taiwan. Similarly, investment in public infrastructure is also expected to steadily increase, it added.
Real private consumption is expected to see modest growth of 2.02 percent in 2025, AS said. Adjustments in minimum wage and military, government and education salaries, along with strong corporate profitability in 2024, are expected to support private consumption, though an increase could be mitigated by uncertainties such as heightened stock market volatility, it added.
In addition, AS statistics showed that the unemployment rate for 2025 is projected at 3.26 percent, down from 3.37 percent in 2024, while the inflationary pressures are expected to persist next year.
The global economic environment is anticipated to face higher uncertainty in 2025, with concerns spanning the intensity of U.S. trade protectionism and acceleration of supply chain restructuring and market fragmentation, AS said, adding that Taiwan must work to transform these challenges into opportunities.
Source: Taiwan Today (https://taiwantoday.tw/index.php)
