TAIPEI (Taiwan News) – The Taiwan Institute of Economic Research (TIER) on Thursday (April 25) revised its forecast for economic growth this year to 3.29%, up from 3.15%.

TIER is the second prominent think tank to hike its prediction after the Chung-Hua Institution for Economic Research (CIER) said last week Taiwan’s gross domestic product would expand by 3.38% in 2024. Both bodies see the economy inside and outside Taiwan warming up, resulting in a positive performance for the country.

Strong demand for AI and other new technology products fueled the GDP optimism, Radio Taiwan International (RTI) reported. Exports, export orders, imports, and manufacturing all showed improvements during the first quarter of the year, according to TIER economists.

However, the consumer price index (CPI) is expected to reach 2.13% for the whole year instead of the 1.95% that TIER expected last January. The rising cost of eating out and renting homes in combination with the April 1 electricity rate hikes were the main forces responsible for higher inflation. Oil price rises due to Middle East conflicts are also clouding the inflation outlook, according to TIER.