TAIPEI (Taiwan News) — Tech is likely to lift Taiwan’s economy and lead to gross domestic product (GDP) growth of 3% in 2024, according to Taiwan Ratings Corp. (TRC).

A partner of S&P Global Ratings, TRC is the nation’s first credit rating agency. In a report, it said growth was expected to snap back from 1.2% in 2023 to 3% in 2024, in line with a global recovery.

Speaking Thursday (Feb. 8), Taiwan Central Bank overnor Yang Chin-long (楊金龍) confirmed the bank would keep keep interest rates at high levels because inflation was still above 2%.

Despite a relatively rosy economic outlook, TRC added that negatives possibly preventing growth could include the high rates, a global downturn, and a fallout from China’s property market woes.

The positives are the expansion of generative AI, electronics, parts for electric vehicles, and renewable energy, according to TRC. They will be particularly important to the expected recovery.

In January the European Chamber of Commerce Taiwan also predicted the nation’s economy “could grow more than 3% in 2024. The 3% figure was based on a belief that exports would drive growth in the manufacturing sector, as performance in the construction and services sectors recovers.”