TAIPEI (Reuters) -Taiwan’s trade-driven economy is expected to grow at a slightly slower pace in 2024 than previously forecast, with exports weaker than projected, despite an AI boom that has boosted demand for tech products, the statistics office said on Friday.
Gross domestic product is now expected to expand by 3.90% this year, the Directorate General of Budget, Accounting and Statistics said, lower than the 3.94% forecast it issued in May.
The statistics agency now sees 2024 exports growing by 8.71% versus last year, down from 10.06% predicted earlier. In 2023, exports dropped by 9.8% year-on-year.
Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia, and is home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC).
The statistics office forecast the 2025 consumer price index at 1.91%, which would be slightly below the central bank’s 2% target as well as below the 2.17% forecast for this year.
(Reporting by Jeanny Kao and Faith HungEditing by Christina Fincher)
