TAIPEI (Taiwan News) — Taiwan’s economy is “blue-yellow,” indicating sluggishness, Taiwan Institute of Economic Research (TIER) said Friday (Nov. 29).

TIER said in a press release that as the global economy is growing, Taiwan’s domestic manufacturing sector is also benefiting from strong demand for emerging technologies. However, traditional industries such as oil, petrochemicals, and automobiles have seen reduced demand, per CNA.

In the electronic components industry, AI and high-performance computing has driven exports for IC manufacturing and chips. The annual growth rates for exports to the US, ASEAN, and India remain strong.

Looking ahead, the institute said with Donald Trump returning to the White House, it is expected the new administration’s policies will affect the global economy. Trump recently announced plans to impose a 25% tariff on goods from Canada and Mexico and an additional 10% tariff on Chinese goods, per Reuters.

Policies like increased tariffs and reduced immigration might drive inflation and influence US Federal Reserve policy, the institute explained. Such policies could affect Taiwan and require monitoring, it added.