TAIPEI (Taiwan News) — Taiwan’s economic monitoring indicator could remain in the booming “red” range this year as cloud service providers expand spending and exports gain momentum, the National Development Council said Monday.

NDC Minister Yeh Chun-hsien (葉俊顯) said the indicator has a “chance to stay red” after showing the booming signal for two consecutive months, per CNA. He said capital spending by major cloud service providers could help sustain export momentum.

The NDC’s latest indicator for January again showed a red light, with the composite score rising by one point to 39. The reading reflects steady economic expansion driven largely by Taiwan’s technology sector.

Speaking at a legislative hearing, Yeh said the government’s statistics agency expects Taiwan’s economy to grow 7.71% this year, per UDN. He said the target is achievable given current economic conditions.

Yeh said two factors support optimism about this year’s outlook. First, global cloud service providers are increasing capital expenditure, which should boost demand for Taiwan’s tech exports.

Second, last year’s export performance created a favorable comparison base after a brief dip following tariff announcements by US President Donald Trump. Exports later rebounded, potentially supporting stronger growth this year.

Lawmakers also raised concerns about potential US tariff changes and geopolitical risks. Yeh said Taiwan has begun discussions with Washington on trade issues, including those related to a Section 301 investigation.

He added that while rising oil prices linked to Middle East tensions could pose risks, Taiwan’s domestic price stabilization mechanism would help cushion the impact. Yeh also said authorities are studying international models for establishing a sovereign wealth fund, though no timeline has been set.