Taiwan's Economic Rebound: AI Demand and Tariff Impacts
Taiwan's economy shows signs of warming due to AI demand, supporting manufacturing. NDC's composite index indicates economic warming despite a slight dip. Emerging tech demand and tariff policies influence growth, with significant rises in industrial production and challenges from U.S. tariff decisions highlighted.
- Country:
- Taiwan
In April, Taiwan's economy appeared to be on an upswing, driven by heightened demand for artificial intelligence applications and a bolstered manufacturing sector, according to the National Development Council (NDC), as reported by Focus Taiwan.
For the fourth month in a row, NDC's composite index reflected a 'warming economy,' maintaining its position in the yellow-red range. Yet, the index fell marginally by two points to 33 from the previous month. This rating system tracks the economy using five colors, with yellow-red signifying economic warming.
Chiu Chiu-ying, the head of the NDC's Department of Economic Development, attributed the growth to strong demand for emerging tech and preemptive orders placed before U.S. tariffs could impact. However, U.S. tariff policies pose potential challenges, with Taiwan's industrial production experiencing more than a 20% increase year-on-year, continuing its growth trajectory.
(With inputs from agencies.)
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