Taiwan’s economy is on track for solid growth in 2025, driven by a strong rebound in industrial production and high-tech exports during the first half of the year.
According to the Directorate-General of Budget, Accounting and Statistics (DGBAS), Taiwan’s GDP grew 5.48% in Q1 2025, exceeding earlier forecasts and lifting the first-half growth estimate to 5.35%. However, DGBAS revised its full-year GDP growth projection down to 3.10%, reflecting expectations of slower expansion in the second half of the year as temporary growth drivers — such as order backlogs and the “AI boom” effect — begin to fade.
The main growth momentum continues to come from exports, particularly in AI-related products and high-performance computing. In May alone, exports reached a record high of USD 51.74 billion, fueled by strong global demand for AI chips from tech giants like Nvidia and Apple, and by early purchasing trends ahead of new U.S. tariff policies. Imports also surged, especially for investment equipment, signaling corporate efforts to expand production capacity.
Taiwan recorded a trade surplus of nearly USD 43.5 billion in the first five months of 2025 — a 38% year-on-year increase — reinforcing its strong balance of payments and macroeconomic stability.
Inflation remains well under control. The Consumer Price Index (CPI) rose only 1.55% year-on-year in May, the lowest level in more than four years. The core CPI has stayed below the 2% warning threshold for 14 consecutive months. At the same time, the Producer Price Index (PPI) and Import Price Index (IPI) declined significantly, reflecting the appreciation of the New Taiwan Dollar (NTD) and the global drop in commodity prices. These indicators highlight easing input cost pressures, contributing to domestic price stability.