Taiwan economic growth accelerates in 2024

Taiwan's Semiconductor Industry

The island of 23 million people is a world power in semiconductors, integral to products ranging from smartphones to wind turbines and missiles.

Chips and other exports are the backbone of Taiwan's economy, but concerns are rising over a potential trade dispute with the U.S. due to a record-high trade surplus.

Taiwan's gross domestic product grew by 4.3 percent last year, matching analysts' forecasts, in contrast to 1.1 percent growth in 2023. The statistics agency forecasts a 3.3 percent expansion for this year.

Potential Tariffs from the U.S.

Former President Trump has threatened tariffs on imports from various U.S. trading partners, aiming to revive domestic manufacturing. In a recent appearance at the World Economic Forum, he warned companies to produce in the U.S. or face tariffs.

Taiwan's trade surplus with the U.S. surged by 83 percent to a record $64.9 billion in 2024, raising alarms about potential tariffs.

Trump has previously accused Taiwan of stealing the U.S. semiconductor industry, further straining trade relations.

Future Economic Outlook

According to Capital Economics, Taiwan's economy is expected to maintain robust growth driven by tech exports, with strong investment growth anticipated. Real wages are increasing, and a recent minimum wage hike is expected to boost consumption growth.