TAIPEI (Taiwan News) – Strong demand for AI products and continued international investment in Taiwan will make sure economic growth stays above 3% this year, the National Development Council said Thursday.

In a report presented to the weekly Cabinet meeting, the council said the global trend of interest rate cuts and the success of AI would fuel Taiwan’s exports and manufacturing sector, per CNA. Local and overseas corporations would continue to invest in the country, stabilizing the employment situation and resulting in higher wages, the report said.

The council also pointed out that most economists at home and abroad also predicted more than 3% growth for 2025. Authoritative think tanks like the Taiwan Institute of Economic Research forecast 3.42% and the Chung-Hua Institution for Economic Research 3.22%. 

However, geopolitical developments could change matters. The council said it would closely watch the international situation, while boosting trade with the US and helping businesses adjust their supply chain.