TAIPEI (Taiwan News) – The economy will grow by 3.22% this year while inflation will stay below 2%, the Chung-Hua Institution for Economic Research said Thursday.
The figure for the gross domestic product was more than 1% lower than the 4.3% growth rate recorded for 2024. However, the general trend is upward, improving from 1.91% during the first quarter to 4.02% for the final quarter of 2025, Radio Taiwan International reported.
The economy is heating up both inside Taiwan and overseas, the think tank said. If increases for key utilities like electricity could be avoided this year, the consumer price index will stay below the psychological barrier of 2%, at 1.93%.
Economists said that while uncertainty was growing about the international situation, both foreign trade and domestic demand in Taiwan were showing positive signs.
The tariffs planned by the incoming Trump administration are the largest question mark hanging over the global economy, with uncertainty about their scale and timing, the think tank said. Economists also expressed unease about whether Taiwan’s most popular exports, information and communication technology products, would be hit by tariffs.
Global demand for AI and high-performance computing products is likely to remain high, though some of the most sophisticated examples might face US export bans to other countries, according to the institution.