TAIPEI (Taiwan News) — Academia Sinica’s Institute of Economics set Taiwan’s economic growth rate next year at 3.1%.

The institute in a Monday press release said demand for high-performance computing (HPC) and AI continues to drive growth. The real GDP growth rate for the first three quarters this year was 5.19%, and the estimated economic growth rate was revised to 4.23% from its July forecast, per CNA.

The institute said due to the strong demand for emerging application technologies in Q2 and Q3, manufacturers are optimistic about future development and investment. For private consumption, despite support from wage increases and bonuses, the post-COVID pandemic consumption rebound has stabilized.

Institute of Economics researcher Lin Chang-ching (林常青) said next year's international political scene is uncertain. Although Taiwan’s Trump Risk Index is not too high, Donald Trump's tariff policies may affect Taiwan’s economy, he said.

Lin added that the stock market is already at a high point, and the rise next year may not be as large as this year. With high uncertainties and rapid capital movements, stock market volatility may increase.

The institute said the trend for next year is to take advantage of opportunities and steadily move forward, per RTI. It added that hardware and AI applications will become important.