1. Taiwan’s Economic Performance Q1/2025
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According to the Directorate-General of Budget, Accounting and Statistics (DGBAS), Taiwan’s economy posted impressive growth in the first quarter of 2025. Preliminary data shows GDP expanded by 5.48%, up 0.11 percentage points from the April estimate (5.37%) and 2.02 points higher than the February forecast (3.46%).
However, DGBAS revised its full-year growth forecast for 2025 down to 3.10% (5.35% in H1 and 1.0% in H2), citing the fading impact of short-term drivers such as backlogged orders and the AI-related production boom.
2. Inflation and Price Indexes
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Consumer Price Index (CPI) in May 2025 rose 1.55% YoY, the lowest level in over four years, mainly due to falling food and oil prices.
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Compared with April, CPI slightly decreased, while core inflation remained below the 2% warning threshold of Taiwan’s Central Bank.
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DGBAS expects June inflation to ease further due to a high base effect from last year’s Dragon Boat Festival and stable international oil prices.
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Inflation in H2/2025 is projected to stay below 2%, supported by a stable exchange rate that helps reduce import costs.
Producer Price Index (PPI) in May dropped 4.63% MoM and 4.30% YoY due to a stronger Taiwan dollar and lower input prices. Despite higher gas and electricity costs, overall input costs moderated, with cumulative PPI up 1.45% in the first five months.
Import Price Index (IPI) fell 7.5% in NT$ terms but remained steady in USD. The decline was mainly driven by lower mineral and chemical prices. Conversely, prices for certain electronic and medical equipment rose slightly, easing cost pressures.
Export Price Index (EPI) showed a similar trend, down in NT$ but up slightly in USD, reflecting exchange rate volatility and global market dynamics.
3. Manufacturing and Services Sector Performance
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Manufacturing PMI (Purchasing Managers’ Index) reached 51% in May, returning to expansion after a period of contraction caused by tariff concerns.
Growth was led by electronics, electrical equipment, and biotech industries, while transportation and raw materials sectors continued to lag. -
Non-Manufacturing Index (NMI) increased to 51.9%, signaling steady expansion in the service sector.
Improvements were noted in new orders and business activity, though backlogs and inventories remain challenging.
Growth sectors include education, information services, and construction, while finance and hospitality still face headwinds.
4. Foreign Trade Performance
According to the Taiwan International Trade Administration (TITA) and the Ministry of Finance (MOF), Taiwan’s total foreign trade value in May 2025 reached USD 90.87 billion, up 32.42% YoY.
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Exports: USD 51.74 billion (+38.63%)
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Imports: USD 39.13 billion (+25.02%)
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Trade Surplus: USD 12.61 billion, up 109.25% YoY
Cumulative Jan–May 2025:
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Total trade: USD 416.47 billion (+22.95%)
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Exports: USD 229.95 billion (+24.25%)
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Imports: USD 186.52 billion (+21.37%)
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Trade surplus: USD 43.43 billion (+38.35%)
5. Vietnam–Taiwan Bilateral Trade
Trade between Vietnam and Taiwan continues to grow strongly:
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May 2025 trade value: USD 2.5 billion (+41.23% YoY)
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Taiwan’s exports to Vietnam: USD 1.53 billion (+35.68%)
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Taiwan’s imports from Vietnam: USD 969 million (+51.05%)
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Jan–May 2025 cumulative trade: USD 11.57 billion (+32.28% YoY)
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Taiwan’s exports to Vietnam: USD 6.91 billion (+22.52%)
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Taiwan’s imports from Vietnam: USD 4.65 billion (+50.05%)
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These figures underscore Vietnam’s growing importance as a trade and manufacturing partner in the region, with strong momentum in electronics, machinery, and agricultural products.
6. Outlook
Taiwan’s economy in May 2025 shows signs of gradual recovery, supported by easing inflation and stable consumer demand. However, external risks — including global trade tensions and geopolitical uncertainties — remain key challenges.
Maintaining economic stability and export competitiveness will be crucial for Taiwan in the coming quarters.