TAIPEI (Taiwan News) – The International Monetary Fund predicted that Taiwan's economic growth rate will reach 2.9% this year, far exceeding growth forecasts for neighboring countries such as Japan, South Korea, Hong Kong, and Singapore.
The IMF report also predicted that Taiwan's annual consumer price index will increase by 1.8% this year, far lower than the global rate of 4.3%. The findings were part of the IMF’s World Economic Outlook, April 2025, per CNA.
The report said major policy shifts are reshaping the global trade system and triggering uncertainty, testing the global economy's resilience. In particular, US President Trump’s tariffs announced in February targeted trading partners, with some countries enacting retaliatory tariffs.
The report mentioned that Trump’s tariffs could cause major stock indices to plummet and bond yields to soar. According to the IMF, uncertain trade policy leads it to expect global economic growth of 2.8% this year and 3% next year, 0.5 and 0.3 percentage points lower than January’s forecast.
The report noted Taiwan's economic growth rate reached 4.3% in 2024, and is expected to be 2.9% in 2025 and 2.5% this year and next year, respectively. This year's economic growth rate forecast is 0.2 percentage points higher than the 2.7% in October's report.
According to the report, Taiwan's annual consumer price growth rate was 2.2% last year and is expected to drop to 1.8% this year. Compared with the global rate of 4.3%, Taiwan's price surge pressure is significantly lower than the global rate.
Next year, the growth rate of consumer prices is estimated to drop to 1.6%. Taiwan's unemployment rate is expected to remain at 3.4% this year and next year.
As for major Asian countries, the report predicted that Japan's economic growth rate will be 0.6% this year and next year, and the annual increase in consumer prices will be 2.4% and 1.7%. China's economic growth rate will remain 4.0% this year and next year, with the annual increase in consumer prices being 0.0% and 0.6%, respectively.
Among Asia’s four dragon economies, the report predicted that South Korea's economic growth rate this year and next year will be 1.0% and 1.4%, respectively. The annual increase in consumer prices will remain at 1.8%.
Singapore's economic growth rate is expected to reach 2.0% and 1.9% this year and next year. The annual increase in consumer prices will be 1.3% and 1.5%, respectively.
Hong Kong's economic growth rate this and next year will be 1.5% and 1.9%. The annual increase in consumer prices will be 1.9% and 2.2%.
The report predicts that the economic growth rate for the US, the world's largest economy, will be 1.8% and 1.7% this year and next year. The annual growth rates of consumer prices will be 3.0% and 2.5%, respectively.
