Taiwan’s economy maintained steady momentum last month, with the government’s business climate monitor flashing a “green” light for the third consecutive month, signaling stable expansion despite rising external risks, the National Development Council (NDC) said yesterday.
The gauge printed 29 last month without change in any of its nine components, underscoring the economy’s resilience even in the absence of growth drivers, the council said.
“As long as artificial intelligence demand remains strong, the state would be sustainable in the second half of this year even after the US imposes a 20 percent tariff on goods from Taiwan,” NDC Department of Economic Development Deputy Director Chen Mei-chu (陳美菊) said at a news conference in Taipei.
Photo: CNA
The Directorate-General of Budget, Accounting and Statistics earlier this month lifted its forecast for GDP growth this year to 4.45 percent from the 3.1 percent forecast in May, citing stronger exports of chips and related products.
The latest data showed that private consumption and the labor market are still holding up, although traditional and non-tech industries continue to face headwinds, Chen said.
The council’s leading index,, which seeks to project the economic state over the next six months, pointed to softer momentum ahead, printing 98.6, down 0.7 percent from one month earlier.
The retreat stemmed from weaker export orders, business sentiment and construction activity, the council said.
In contrast, the coincident index, a measure of current conditions, climbed 0.28 percent to 106.2, marking its 27th straight month of gains on the back of robust exports, electricity consumption, manufacturing sales, industrial output and imports of capital equipment, it said
Overall, local businesses remain wary of the global trade environment, especially Washington’s planned tariffs on semiconductors, Chen said.
Many companies have diversified their global investment footprints. Taiwan Semiconductor Manufacturing Co (台積電), the world’s top contract chipmaker and a critical supplier to Apple Inc and Nvidia Corp, has expanded its capacity in the US to minimize tariff exposure.
As long as global artificial intelligence demand stays robust, Taiwan is expected to maintain its pivotal role in the supply chain, she said.
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