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Taiwan's economy overheated in Dec 2025, fueled by AI demand, strong exports, and U.S. tariff cuts, with 2026 growth forecast above 4%.
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.
The leading indicators index climbed to 103.36 for the fifth straight month, supported by rising export orders and stock prices.
Despite declines in retail and food services, the U.S. reduction of tariffs on Taiwanese goods from 20% to 15% boosted confidence.
Analysts forecast growth above 4% in 2026, citing the AI boom and improved investor outlook.
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La economía de Taiwán se sobrecalentó en diciembre de 2025, impulsada por la demanda de IA, las fuertes exportaciones y los recortes arancelarios de los Estados Unidos, con una previsión de crecimiento de 2026 superior al 4%.