Taiwan’s Economic Institute Lowers GDP Growth Forecast to 2.91% Due to Weakening External Demand from US Tariff Policies

In a discussion with political representatives, Taiwan's Economic Institute announced that it is revising its GDP growth forecast for the year to 2.91%, down by 0.51 percentage points from January due to changes in US tariff policies. President Lai Ching-te emphasized that the government has proposed a support plan of NT$93 billion in response to the impact of these policies.
Lai stated, "The key now is to ensure that funds are used effectively instead of distributing cash indiscriminately." With the ongoing adjustments in tariff policies, external demand is expected to weaken significantly in the latter half of the year.
The Director of the Economic Forecasting Center mentioned that if the Chinese yuan depreciates, it may lead several Southeast Asian currencies to also fall. He cautioned about the potential for a price competition driven by currency exchange rate wars.
Institute President Chang Chien-yi pointed out that the market is currently experiencing excessive profits due to order shifting, but future market trends still need to be observed.
Additionally, as the US Federal Reserve hints at possible interest rate cuts, US stocks surged, and the Taiwan stock market opened higher on the 25th, reaching above 20,000 points, driven by electronic and financial stocks.