The International Monetary Fund (IMF) has increased Taiwan’s 2025 economic growth forecast to 3.7%, up from 2.9% previously, citing mild tariff effects and better global financial conditions. The update, released in the IMF’s latest World Economic Outlook (WEO) report on Tuesday, also slightly lowered the 2026 forecast to 2.1% from 2.5%. 

The IMF predicts Taiwan’s consumer prices will rise 1.7% this year and 1.6% next year, while the unemployment rate is expected to stay steady at 3.4%. The report noted that easing trade tensions and stable financial markets have boosted global recovery prospects since April.

Global GDP growth is now projected at 3.2%  in 2025, up from July’s 3% estimate, with 2026 growth expected at 3.1%. IMF Director of the Research Department Pierre-Olivier Gourinchas said the global economy has benefited from lower tariffs, flexible business strategies, policy support in Europe and China, a weaker U.S. dollar, and increasing investment in artificial intelligence.

The United States is forecasted to grow 2.0% next year, while the eurozone and Japan will see modest increases to 1.2% and 1.1%, respectively. China’s growth outlook remains unchanged at 4.8% for 2025.