Taipei: The Taiwan Institute of Economic Research (TIER) on Thursday raised its 2024 GDP growth forecast for Taiwan to 4.03 percent, citing an economic expansion underpinned by stable domestic demand and increasing exports. According to Focus Taiwan, the think tank had earlier projected a 2024 GDP growth of 3.85 percent. However, the forecast was revised upwards as global demand for artificial intelligence (AI) applications bolstered Taiwan's exports in the third quarter, despite challenges in the traditional economic sector. Gordon Sun, director of TIER's Economic Forecasting Center, highlighted the growing exports and the potential for traditional industries to rebound in 2025, projecting a 3.15 percent economic growth amid steady private-sector investment and consumption. Sun also cautioned about the uncertainties stemming from U.S. President-elect Donald Trump's possible return to the White House, which could impact the global economy, including Taiwan. Despite TIER's forecast of declining inflationary pressure in 2025, Sun emphasized ongoing challenges such as climate change, labor shortages, rising utility rates, and geopolitical uncertainties, which are expected to push Taiwan's consumer price index (CPI) up by 1.87 percent next year. TIER President Chang Chien-yi urged Taiwan to prepare thoroughly should Trump escalate the trade war, warning that such an event could significantly impact Taiwan's export-driven economy.