The Taiwan Institute of Economic Research (TIER) forecasts economic growth in 2025 at 3.42%, an increase of 0.27 percent from the forecast made in November 2024. TIER Economic Forecast Director Sun Ming-Te (孫明德) states that this year will be relatively balanced as consumption data is stable, exports have increased, and traditional industries are showing better performance.
TIER data reports that in 2025, Taiwan's external demand will once again become the main force of economic growth. Export growth rates may slow, but data shows a strong demand for emerging technologies which, coupled with many countries having started interest rate cuts, will result in a steady rise. Global trade volume is likely to continue growing in 2025, especially with traditional industries expected to recover, driving steady growth.
In terms of domestic demand, TIER reports that rates of consumer sales will continue to climb steadily, with a stable employment market that should provide support for private consumption. Investments in emerging technologies are also driving demand for semiconductor equipment and increasing import values of electromechanical equipment. Domestic chip leaders are expanding capital expenditures and accelerating net zero transformation investment, and factories are increasing their facilities in Taiwan which will continue to make positive contributions to economic growth.
However, TIER warns that expected U.S. slowdowns, Europe's weak momentum, and China's uncertainty due to possible U.S. tariff increases and questionable stimulus policies may result in global economic challenges.