Fitch Solutions has revised Taiwan’s 2025 GDP growth forecast from 3.5% to 3.3%, citing slowing global economic activity, particularly in the U.S. and China. While Taiwan’s semiconductor sector remains a critical growth driver, potential downside risks include U.S. trade policies, especially if a second Trump administration imposes tariffs on Taiwanese semiconductor exports.
The report also underscores Taiwan’s stable monetary policy, with the Central Bank expected to maintain interest rates at 2.00% throughout 2025. Taiwan’s current account surplus is projected to narrow slightly to 14.1% of GDP, reflecting weaker global demand but long-term stability.
On the political front, President Lai Ching-te faces legislative challenges that could slow economic reforms, while cross-strait tensions remain a key geopolitical concern. Beijing continues to exert economic and political pressure, adding to uncertainties in trade and investment relations.
Despite these challenges, Taiwan’s economic fundamentals remain strong, supported by its leading role in semiconductor manufacturing and steady foreign investment inflows. The report reaffirms Taiwan’s resilience in a shifting global economy and highlights opportunities for long-term economic stability.
Read the full report on the official website.