TAIPEI (Taiwan News) — Bank of Taiwan said Monday it expects Taiwan’s economy to outperform last year, with traditional industries poised to recover under the Taiwan-US tariff agreement.

Bank of Taiwan President Wu Chia-hsiao (吳佳曉) said last year’s economy showed a K-shaped pattern, with AI-related sectors such as chips and information and communications technology performing strongly while traditional industries struggled, per CNA. He said the Taiwan-US tariff agreement will help traditional industries recover.

Wu said traditional industries, after hitting bottom last year, have a chance to rebound, adding that strength in AI-related industries will support overall growth. He said Bank of Taiwan expects its lending volume to maintain annual growth.

Global financial volatility influenced Taiwan’s economy last year, but domestic growth remained strong, he said.

On housing, Wu said the bank’s mortgage lending rose by about NT$130 billion (US$4.11 billion) last year, with more than 90% going to first-time buyers. He said the Ministry of Finance is reviewing whether to extend the preferential mortgage program for young people, which offers a five-year grace period and an interest rate of 1.77%.

Wu said the program remains attractive even without subsidies. He said the bank will support first-time buyers while monitoring industrial developments and policy changes.