by supplychainreport
Taiwan’s central bank raised its economic growth forecast for 2025, citing strong exports of technology goods to the United States, while keeping its benchmark interest rate steady at 2%. The upgrade reflects Taiwan’s position as a key producer of advanced semiconductors, which are in high demand for artificial intelligence applications.
The central bank now projects 2025 economic growth at 7.31%, up from a previous forecast of 4.55% in September. For 2026, growth is expected to moderate to 3.67%, compared with an earlier projection of 2.68%. The bank also revised its consumer price index forecast downward to 1.66% this year and 1.63% for 2026, indicating inflation remains manageable. Bank governor Yang Chin-long highlighted that U.S. demand for high-tech goods, including semiconductors, has been a key driver of Taiwan’s trade surplus, which reached $143.8 billion this year.
Officials emphasized that current monetary policy remains appropriate while closely monitoring developments in U.S. tariffs and trade regulations, which currently impose a 20% levy on most goods from Taiwan, though semiconductors are exempt. The strong performance in exports is expected to continue supporting Taiwan’s supply chain, manufacturing sectors, and broader economic stability.
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