TAIPEI, July 29 (Reuters) – Taiwan’s economy, heavily dependent on global trade, likely expanded more rapidly in the second quarter of 2025 compared to the previous three months, according to a Reuters survey conducted on Tuesday. This growth is attributed to robust demand in the technology sector, although concerns over U.S. tariffs remain a source of uncertainty.
Economists participating in the poll, numbering 25 in total, projected that Taiwan’s gross domestic product (GDP) increased by 5.7% year-over-year during the April to June period. This would mark an improvement from the 5.48% growth recorded in the first quarter.
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Estimates for the preliminary GDP figures, which are scheduled to be released on Thursday, ranged from a modest 4.1% rise to a high of 8%.
The island’s export-oriented economy could face significant challenges this year if U.S. President Donald Trump proceeds with his proposed tariff measures. Earlier this year, in April, Trump temporarily suspended the plan for 90 days, which included a proposed 32% tariff on Taiwan.
Negotiations between Taiwan and the U.S. regarding tariffs are ongoing, with no resolution yet announced.
The Asian Development Bank warned last week that rising U.S. tariffs and trade disputes could further weaken economic prospects for Asia and the Pacific.
It also noted that geopolitical instability and regional conflicts could disrupt global supply chains and lead to higher energy costs.
Taiwan Semiconductor Manufacturing Company (TSMC) recently announced a record profit that exceeded forecasts, but cautioned that potential U.S. tariffs might affect earnings, possibly in the fourth quarter.
Meanwhile, China’s economy slowed less than anticipated in the second quarter, showing resilience in the face of U.S. trade policies.
In May, Taiwan’s statistical office slightly lowered its forecast for full-year 2025 economic growth, from 3.14% to 3.1%, citing concerns over tariffs.
Initial GDP data will be released in a brief statement. More comprehensive and updated figures, including forward-looking projections, will be published in the coming weeks.
Poll compiled by Vijayalakshmi Srinivasan and Carol Lee; Reporting by Faith Hung and Ben Blanchard; Editing by Mrigank Dhaniwala
— News Original —
Taiwan’s second-quarter economic growth likely rose with tech demand strong: Reuters poll
TAIPEI, July 29 (Reuters) – Taiwan ‘s trade-reliant economy likely grew at a quicker pace in the second quarter of 2025 compared with the prior three months, driven by strong tech demand, according to a Reuters poll on Tuesday, though U.S. tariffs continue to cloud the outlook.
Taiwan ‘s gross domestic product is expected to have grown 5.7% year-on-year in the April-June quarter, the poll of 25 economists showed, up from 5.48% in the first quarter.
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The economists ‘ forecast for preliminary GDP data, which is due on Thursday, varied widely from an expansion of just 4.1% to as much as 8%.
Taiwan ‘s trade-driven economy could be substantially affected this year if U.S. President Donald Trump follows through with his tariff policy. Taiwan was due to get a 32% tariff, until Trump paused the whole plan for 90 days in April.
Taiwan ‘s tariff talks with the United States have continued, with no outcome yet.
“Prospects for developing Asia and the Pacific could be dented further by an escalation of U.S. tariffs and trade tensions,” the Asian Development Bank said in a report published last week.
“Other risks include conflicts and geopolitical tensions that could disrupt global supply chains and raise energy prices,” it added.
TSMC this month reported a record, forecast-beating quarterly profit, but warned that future income might be hit by U.S. tariffs, though perhaps not until the fourth quarter.
China ‘s economy slowed less than expected in the second quarter in a show of resilience against U.S. tariffs.
In May, the Taiwan government ‘s statistics bureau trimmed its full-year 2025 economic growth outlook to 3.1% from a previous 3.14%, citing tariff concerns.
Taiwan ‘s preliminary GDP data will be released in a statement with limited commentary. More detailed and revised figures, including forward-looking forecasts, will follow a few weeks later.
Poll compiled by Vijayalakshmi Srinivasan and Carol Lee; Reporting by Faith Hung and Ben Blanchard; Editing by Mrigank Dhaniwala