Executive Yuan projects over 3% economic growth

TAIPEI (TVBS News)—Taiwan's Executive Yuan (行政院)—reported a promising economic outlook for 2025 on Wednesday (Feb. 5), projecting a domestic inflation rate to fall below 2%.

According to the report, the government has committed to fostering a more favorable industrial environment by promoting the "Three Major Programs for Investing in Taiwan," the "Trillion NT Dollar Investment National Development Plan," and the "Five Trusted Industry Sectors."

S&P Global (標普全球) has forecasted a global economic growth rate of 2.5% for 2025, slightly lower than 2024's 2.7% due to various uncertainties. However, Taiwan's economy is expected to outpace the global average with a growth rate exceeding 3%, according to the Executive Yuan.

To address international changes, the government plans to enhance domestic industries' technological innovation and competitiveness. Initiatives like the National Hope Project, Balanced Taiwan, and Healthy Taiwan will spearhead this effort. The Executive Yuan aims to reach an annual startup investment target of NT$150 billion by 2027, focusing on AI, cultural innovation, smart healthcare, and green net-zero sectors.

The government has also allocated a 2025 investment budget of NT$12.8 billion, expecting to stimulate over NT$25.6 billion in private startup funds. This initiative will support the development of the "Five Trusted Industry Sectors." Additionally, the central bank implemented its seventh wave of credit control measures in September 2024 and will continue to monitor real estate loans and the effectiveness of these measures.

To alleviate price pressures, the Executive Yuan's Price Stabilization Task Force will extend tariff, goods tax, and business tax reductions on essential goods until March 31, 2025. This approach underscores the government's dedication to maintaining economic stability and growth.