FX.co ★ Taiwan's Economy Could Hit Nearly 6% in 2025

Taiwan's economic growth could approach 6% this year, bolstered by an unexpectedly strong performance in the third quarter, largely driven by a surge in artificial intelligence (AI) developments, according to the head of the statistics agency on Thursday. The economy, which relies heavily on exports, has thrived thanks to vigorous demand in the semiconductor and related sectors. This growth has effectively countered the impact of the 20% tariffs imposed by the United States during the Trump administration. Taiwan's GDP experienced a year-on-year increase of 7.64% in the third quarter, exceeding the 6.0% forecast and setting the stage for an upward revision of the agency's full-year growth projection to more than 5%. Directorate-General of Budget, Accounting and Statistics Minister Chen Shu-tzu indicated to lawmakers that Taiwan's economy might grow by more than 5.5% this year, nearing the 6% mark, as reported by Reuters. Initially, the agency anticipated third-quarter growth to be around 1%, but the actual figure of 7.64% led to the optimistic adjustment in the annual growth forecast.