TAIPEI (Taiwan News) – Taiwan’s economy grew an estimated 5.37% in the first quarter, as businesses brought forward orders to avoid US tariffs, the government said Wednesday.

The release of the estimate followed forecasts from think tanks slashing estimated GDP growth for the whole year from more than 3% to less than 2%. The predictions are dependent though on the level of tariffs the US will impose on Taiwan.

US President Donald Trump initially announced 32% tariffs for imports from Taiwan, but later imposed a basic 10% level during 90 days of negotiation. The move led to businesses hurrying up orders before any higher tariffs took effect, per CNA.

The Directorate General of Budget, Accounting and Statistics said the advance estimate of 5.37% growth was a revision from the 3.46% it forecast in February. A surge in exports and investment had made the improved picture for the first quarter possible, but raised uncertainty for the second half of the year, the government department said.

If forecasts for the next three quarters stand, then overall growth for the year could reach 3.6%, instead of the 3.14% forecast in February. However, because it is still unclear how the tariff issue will develop, it was difficult to make accurate predictions, the directorate general said. Its next official forecast is scheduled for late May.