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flag Taiwan's economy overheated in Dec 2025, fueled by AI demand, strong exports, and U.S. tariff cuts, with 2026 growth forecast above 4%.

flag Taiwan’s economy entered an "overheating" phase in December 2025, with its composite index rising to 38—the highest in a year—driven by strong global demand for AI products, robust exports, and improved business sentiment. flag The leading indicators index climbed to 103.36 for the fifth straight month, supported by rising export orders and stock prices. flag Despite declines in retail and food services, the U.S. reduction of tariffs on Taiwanese goods from 20% to 15% boosted confidence. flag Analysts forecast growth above 4% in 2026, citing the AI boom and improved investor outlook.

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