TAIPEI (TVBS News) — Taiwan's economy could achieve a 4% GDP growth in 2024, with the possibility of reaching 4.1%, as projected by the National Development Council (NDC, 國發會) in November. The council highlights the significant role of AI server momentum in driving growth.
Despite Taiwan's leading position in AI technology, the Taiwan Institute of Economic Research's (TIER, 台經院) October survey warned of a decline in the manufacturing business climate index to 93.12 points, which marked the fifth consecutive month of decline.
Considering the fact that U.S. President Donald Trump could introduce substantial uncertainties in 2025, TIER Director Gordon Sun (孫明德) points out fluctuations in the Japanese yen and China's overproduction as primary challenges for Taiwan. “Hence, it leads to uneven recovery across domestic industries,” he notes.
Meanwhile, Wang Jiann-chyuan (王健全), vice president of the Chung-Hua Institution for Economic Research (CIER, 中經院), underscores potential risks from Trump's policies, such as a potential 60% tariff on China and shifts in global trade dynamics. "The looming threat of higher tariffs could increase costs and reduce exports, negatively impacting Taiwan's economy," he says.
Looking ahead, experts urge Taiwan to leverage AI trends and sustain its leadership in advanced manufacturing to meet its economic growth targets for 2025.
