TAIPEI: In the first quarter of 2025, Taiwan’s economy, which heavily relies on trade, experienced its most rapid growth in a year, thanks to a surge in exports driven by strong demand for technology products, especially ahead of potential US import tariffs.
Taiwan is a crucial player in the global tech supply chain for major companies like Apple and Nvidia, and it’s the home of the largest contract chip manufacturer worldwide, Taiwan Semiconductor Manufacturing Co Ltd (TSMC).
The initial data shows that gross domestic product (GDP) grew by 5.37 percent in the January-March period compared to a year prior, marking the fastest growth since the first quarter of 2024, which saw a 6.64 percent increase, according to the statistics agency’s report on Wednesday (Apr 30).
This growth surpassed analysts’ expectations, which had forecast a 3.4 percent increase in a Reuters poll, and was stronger than the 2.9 percent growth observed in the fourth quarter.
On a quarterly basis, the economy showed a seasonally adjusted annualized growth rate of 9.67 percent.
Earlier this month, US President Donald Trump paused plans for sweeping import tariffs on all nations for 90 days to facilitate ongoing negotiations.
