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Investing.com -- Taiwan’s economy expanded by 3.1% in the second quarter of 2025 compared to the previous quarter, marking its strongest growth rate outside of the pandemic period since 2007.
The quarterly growth accelerated from 1.8% in the first quarter, driven primarily by a boom in exports that compensated for a continuing slowdown in domestic demand.
On a year-over-year basis, Taiwan’s economy grew by 8.0%, significantly exceeding the LSEG consensus forecast of 5.7%.
According to Capital Economics, this robust pace of growth is unlikely to be sustained in coming quarters, particularly as the effect of front-running U.S. tariffs begins to fade.
Despite the strong economic performance, inflation pressures remain subdued in Taiwan. Nevertheless, Capital Economics noted that the central bank will likely refrain from cutting interest rates due to the current strength in GDP growth.
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