Taiwan raises 2024 economic growth forecast, AI demand solid

TAIPEI :Taiwan's trade-driven economy is expected to grow at a faster pace in 2024 than previously forecast thanks to the AI boom that has boosted demand for tech products, the statistics office said on Friday.

Home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC), the island is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia.

Gross domestic product (GDP) is now expected to expand by 4.27 per cent this year, the Directorate General of Budget, Accounting and Statistics said, higher than the 3.9 per cent forecast it issued in August.

That would mark a strong improvement from the 1.31 per cent growth rate recorded for 2023.

The statistics agency now sees 2025 exports growing by 5.98 per cent on year, compared with an earlier 8.71 per cent forecast for 2024.

It forecast the 2025 consumer price index at 1.93 per cent, which would be slightly below the central bank's 2 per cent target but slightly above the 1.85 per cent forecast for this year.

It also revised third quarter economic growth upwards to 4.17 per cent, compared with a preliminary 3.97 per cent.