For proof that an economy can thrive even under constant military threats from a powerful neighbor and amid US President Donald Trump’s sweeping global tariffs, look no further than Taiwan.

Taiwan has sharply raised its economic growth forecast for 2025 to 7.37 per cent, the fastest rate in 15 years, as roaring demand for artificial intelligence continues to boost its electronics exports.

TAIPEI (Reuters) -Taiwan's ambassador to Saint Vincent and the Grenadines has congratulated the opposition New Democratic Party (NDP) for winning the election in the Caribbean country, one of Taipei's last remaining formal diplomatic allies.

The remarks come amid the two countries’ worst diplomatic crisis in years, after the Japanese prime minister said a Chinese attack on Taiwan could trigger a military response from Tokyo.

Gross domestic product is expected to expand 3.54% in 2026, according to a statement from the statistics bureau in Taipei on Friday. That compares with the previous forecast of 2.81% back in August. Exports were projected to grow 6.32% for the year, versus an earlier call of 2.19%.

The New Zealand navy's largest ship, the oiler HMNZS Aotearoa, made a rare transit through the sensitive Taiwan Strait earlier this month, Defence Minister Judith Collins told Reuters.

The president has spoken with the leaders of both countries as they spar over remarks the Japanese prime minister made about the Beijing-claimed island democracy.

China’s campaign to deprive Taiwan of diplomatic recognition risks a rare reversal this month when voters in Honduras choose their next president.

Taiwan President Lai Ching-te outlined his administration’s proposal for a $40 billion defense supplemental this week that would fund an island-wide air defense system and the procurement of missiles,