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Taiwan Trims 2025 GDP Growth Forecast, Cites U.S. Tariffs Uncertainty

  • Full year 2025 GDP forecast trimmed to 3.1% vs previous 3.14%
  • 2025 exports expected to rise 8.99% vs previous 7.08%
  • 2025 CPI cut to +1.88% vs +1.94%

TAIPEI, May 28 (Reuters) - Taiwan's trade-reliant economy is expected to grow at a slightly slower pace in 2025 than previously forecast, weighed down by uncertainty over possible U.S. tariffs.

Taiwan is a key hub in the global technology supply chain for companies such as Apple and Nvidia, and home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), .

Taiwan's gross domestic product for this year is now expected to be 3.1% higher than last year, the agency said, revising downward the 3.14% forecast it issued in February.

That would also be lower than the 4.59% growth rate for 2024.

Exports this year are expected to grow 8.99%, the agency said, upgrading a previous forecast of 7.08%.

For the first quarter of this year, GDP expanded by 5.48%, the agency said, compared with a preliminary reading of 5.37%.

The first quarter's performance marked the fastest rate since the first quarter of 2024 when the economy expanded 6.64%.

The statistics agency also slashed the 2025 consumer price index (CPI) forecast to 1.88% from the previous 1.94%.

Reporting by Faith Hung and Jeanny Kao; Editing by Sharon Singleton

Source: Reuters


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