Over half of German firms optimistic at Taiwan economic outlook: Survey

Taipei, Feb. 20 (CNA) More than 50 percent of German businesses in Taiwan said they were positive about the outlook of the Taiwanese economy, according to an annual survey released by the German Trade Office Taipei.

The strong economic growth Taiwan recorded in 2024, and the country's thriving industry sector have "fostered optimism among German companies regarding Taiwan's economic outlook for 2025," the trade office said in a statement released along with the survey report Thursday.

According to the Business Confidence Survey 2024/2025 report, 51.6 percent of respondents expect Taiwan's economy to continue to improve in 2025, while 53.1 percent remained optimistic about the three-year outlook.

Taiwan reported a 4.3-percent economic growth in 2024, a better-than-expected result that represented a three-year high, according to data released by the Directorate General of Budget, Accounting and Statistics on Jan. 24.

Many German companies in Taiwan also saw their performance improve in 2024, said Eva Langerbeck, chief representative and executive director of the trade office, when releasing the survey results during a news conference in Taipei Thursday.

The report showed that 62.8 percent of companies achieved their business target in 2024, up 10 percentage points from 2023, according to the trade office.

Taiwan remains an important market for German businesses in Asia, but they still face global and domestic challenges, Langerbeck said.

Among the respondents, 63.2 percent listed Taiwan's economic growth as their top concern, while 55.8 percent worried about cross-Taiwan Strait relations, the survey showed.

The trade office also highlighted concerns about stable energy supply expressed by 57.9 percent of respondents, "suggesting diversifying energy sources and building robust backup energy systems as solutions."

In addition, there were also domestic challenges including import restrictions and issues in tender processes, according to the report.

These concerns led to more companies (41.7 percent) refraining from investment than those having plans (39.6 percent) to invest over the next two years, for the first time since 2017.

Taiwan's economic performance has been supported by German businesses' involvement in industries, notably the semiconductor and auto sectors, said Emile M.P. Chang (張銘斌), director-general of the Department of Investment Promotion under the Ministry of Economic Affairs, during the news conference.

Citing President Lai Ching-te's (賴清德) recent proposal to establish a "Global Semiconductor Democratic Supply Chain Partnership Initiative," Chang said Taiwan and Germany should work together to face the challenges in the face of U.S. President Donald Trump's policy of increasing tariffs aimed at semiconductor industries.

The German Trade Office Taipei is "part of the worldwide network of German Chambers of Commerce Abroad," it said on its website.

The survey was conducted between Nov. 13 and Dec. 20 last year, the trade office said, noting the "high" response rate of 37 percent out of 260 eligible businesses contacted for the survey, which was first conducted in 2012.