2024 GDP estimate raised to 4.27 vs previous 3.9
2025 GDP estimate 3.29
2025 exports seen at 5.98 yy
2025 CPI projected at 1.93 yy
Analyst sees 2025 GDP forecast too optimistic

TAIPEI, Nov 29 Reuters Taiwan39;s tradedriven economy is expected to grow faster in 2024 than previously forecast thanks to the AI boom that has boosted demand for tech products, the statistics office said on Friday, but new U.S. tariffs could curb growth next year.

Home to the world39;s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co. TSMC, the island is a key link in the global technology supply chain for companies such as Apple and Nvidia.

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

The AI boom has kicked off exports of our electronics and telecommunication products. However, traditional goods exports are still soft due to overcapacity, the statistics office said in a statement.

China has taken loose monetary policy and fiscal policy to boost its economy, but its property market remains weak. That and escalating U.S.China tensions have weighed and will continue to weigh on growth momentum, the statement added.

For 2025, the statistics office now forecasts GDP to grow 3.29, above the 3.26 previously predicted.

Some analysts said the forecast might be too optimistic, given threats of across the board import tariffs by…