TAIPEI (TVBS News) — DBS Bank (星展銀行) unveiled Wednesday (July 23) its third-quarter economic outlook, delivering optimistic projections for Taiwan's economic performance. Speaking during an online press conference, DBS Group (星展集團) senior economist Ma Tie-ying (馬鐵英) announced an upward revision of Taiwan's GDP growth forecast for 2025 to 4 percent. The adjustment reflects an early surge in overseas orders and robust global demand for artificial intelligence technology driving the island's export-dependent economy.
Ma observed that reciprocal tariffs may have a smaller overall impact on Taiwan's economy than initially anticipated, as technology products remain excluded from current measures. Products affected by these tariffs account for approximately US$30 billion (around NT$881 billion), representing only 26 percent of U.S. imports from Taiwan. The economist emphasized that semiconductor tariffs still pose a significant challenge, warning that expansion to broader tech product categories could create considerable economic consequences for Taiwan's technology-driven economy.
DBS adopted a conservative stance on Taiwan's GDP growth for next year, lowering its forecast from 2.4 percent to 2 percent. The bank also adjusted inflation predictions, reducing this year's CPI from 1.9 percent to 1.7 percent and next year's from 1.7 percent to 1.5 percent. Ma noted that currency appreciation and monetary policy tightening effects may ease price pressures, though potential electricity price hikes pose significant risks to Taiwan's economic stability. ◼ (At time of reporting, US$1 equals approximately NT$29.37)
