Think tank raises Taiwan 2024 GDP growth to 4.03%

Taipei, Nov. 7 (CNA) The Taiwan Institute of Economic Research (TIER) on Thursday raised its 2024 GDP growth forecast for Taiwan to 4.03 percent, citing an economic expansion underpinned by stable domestic demand and increasing exports.

The think tank had earlier forecast 2024 GDP growth of 3.85 percent, but, propped up by global demand for artificial intelligence (AI) applications, Taiwan's exports started to warm up in the third quarter despite a weak old economy sector, said Gordon Sun (孫明德), director of the TIER's Economic Forecasting Center.

As exports of traditional industries are expected to pick up in 2025 and thanks to a steadfast private-sector investment and consumption at home, Taiwan's economy is set to grow by 3.15 percent in 2025 amid a mild expansion, Sun said.

However, he warned about uncertainties that U.S. President-elect Donald Trump's return to the White House could bring to the global economy, including Taiwan.

Although the TIER forecast that Taiwan's inflationary pressure will gradually fall in 2025, Sun said that as challenges from climate change, labor shortages, rising utility rates and geopolitical uncertainties will remain, the think tank believes Taiwan's consumer price index (CPI) will grow by 1.87 percent the next year.

TIER President Chang Chien-yi (張建一) said Taiwan must make full preparations in advance if Trump escalates the trade war, as this will affect exports tremendously.