TAIPEI (Taiwan News) – The economy will grow more than 3% this year while the electricity supply will remain stable, a government report said Thursday.

Following a government estimate of 4.27% growth for 2024, this would be the second year in a row that Taiwan’s economy has performed better than the global average, per CNA. The stable power supply would be the result of new power plants coming online and more contributions from green energy.

The world economy is expected to grow only 2.5% due to factors such as the US-China trade war and the expected continuation of conflicts in Ukraine and the Middle East. Taiwan, however, will benefit from the surging demand for new technology and AI products, boosting manufacturing, exports, and investments.

In a report filed with the Legislative Yuan, the Cabinet said it would continue to promote investment in AI, semiconductors, defense industries, security monitoring, and next-generation connectivity.

The government’s estimate for growth this year matches forecasts by think tanks, with the Taiwan Institute of Economic Research predicting 3.42% and the Chung-Hua Institution for Economic Research 3.22%.