Taiwan 2025 economic growth forecast raised: Good News for the Economy

Beginner Level | May 13, 2025

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Taiwan 2025 economic growth forecast

In April the Directorate General of Budget, Accounting and Statistics (DGBAS) raised the Taiwan 2025 Economic growth forecast for its full-year GDP 3.6%, up from the earlier estimate of 3.14%. This came after a strong first quarter, where Taiwan’s economy grew by 5.37% year-on-year, the fastest growth since early 2024. The rise is driven by exports and global demand for technology products, especially AI chips.

What Is a Growth Forecast?

A growth forecast is an estimate. It tells us how much a country’s economy might grow in the future. If the forecast goes up, it usually means good things are happening—like more jobs, higher income, and better business conditions.

What’s Helping the Economy?

Taiwan’s economy is growing because of high global demand for AI and semiconductor products. Tech companies like TSMC are seeing strong profits. In fact, Taiwan’s exports rose 29.9% year-on-year in April, reaching $48.66 billion—one of the highest monthly totals in its history. Buyers around the world are stocking up on electronics, partly due to possible U.S. tariffs on Asian tech goods.

In addition, the government is supporting production and investment, while also encouraging growth through small business programs and tech job training.

A Positive Outlook

Experts say Taiwan’s economic outlook is strong. The mix of global demand, tech sector success, and smart policy means Taiwan could see steady growth throughout the year. If this continues, families and workers may benefit from more jobs, better pay, and greater economic stability.

Vocabulary

Gross Domestic Product (GDP) (noun): The total value of goods and services produced in a country.
- Example: Taiwan’s GDP is expected to grow by 3.6% in 2025.
Forecast (noun): A guess about the future based on current facts.
- Example: The forecast says the economy will grow.
Artificial Intelligence (AI) (noun): Smart computer systems that can do tasks like humans.
- Example: Demand for AI chips is growing.
Semiconductor (noun): A material used to make electronic chips.
- Example: Taiwan exports many semiconductor products.
Export (noun/verb): Selling products to other countries.
- Example: Taiwan’s exports jumped nearly 30%.
Tariff (noun): A tax on products coming from another country.
- Example: Companies are buying early to avoid U.S. tariffs.
Investment (noun): Putting money into something to earn more later.
- Example: Taiwan is seeing more investment in tech.
Production (noun): Making goods in factories or companies.
- Example: Factory production helped the economy grow.
Demand (noun): How much people want to buy something.
- Example: There is strong global demand for AI tech.
Economy (noun): The system of money, jobs, and trade in a country.
- Example: A strong economy creates jobs.

Discussion Questions (About the Article)

What made Taiwan raise its growth forecast in 2025?
Why are exports important to Taiwan’s economy?
How does AI affect Taiwan’s economic performance?
What might happen if the U.S. adds more tariffs?
How is the government helping support growth?

Discussion Questions (About the Topic)

How can technology help a country’s economy grow?
What industries are most important to your country’s economy?
How should a country prepare for future economic risks?
What are the pros and cons of exporting many goods?
How can governments support workers in a growing economy?

Related Idiom

“A rising tide lifts all boats”
Meaning: When the economy improves, it helps everyone.
Example: With Taiwan’s growth, many people and businesses will benefit—a rising tide lifts all boats.

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Source

This article was inspired by:

Reuters, April 30, 2025: Taiwan Q1 GDP Grows Fastest in a Year as Exports Surge
Reuters, May 8, 2025: Taiwan April Exports Jump 30% Ahead of U.S. Tariffs

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