(Bloomberg) -- Taiwan raised its estimate for growth in 2025, easing some concern over the impact of US duties on an economy that has roared on tech exports.

Gross domestic product is set to expand 4.45% this year, the statistics bureau in Taipei said in a statement on Friday - its first estimate since the Trump administration hit the archipelago's shipments with 20% tariffs. The new figure is up from the 3.1% predicted in May.

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In a sign the government is confident demand for Taiwan's products will persist, the bureau predicted exports will rise 24.04% this year, up from the previous call of 8.99%.

Taiwan's economy has done well because its tech exports have been in great demand during the AI boom and companies front-loaded purchases before tariffs landed. The government in Taipei has said the 20% tariff level is temporary and that it will continue negotiating with the US to get a better deal.

In its first forecast for next year, the statistics bureau said GDP is seen expanding by 2.81%. The prediction for 2025 consumer price index was trimmed to 1.76%, from 1.88%.

The tariff blow could ultimately be smaller than feared for Taiwan. President Donald Trump has also said he planned to impose a 100% levy on semiconductor imports but that firms investing in the US would be exempt.

A Taiwanese official said earlier that Taiwan Semiconductor Manufacturing Co. -- the self-ruled archipelago's largest company and a key supplier of advanced chips to Nvidia Corp. and Apple Inc. -- shouldn't be subject to those duties because it has plants in the US.

--With assistance from Cynthia Li.

(Updates with prediction for CPI and more context.)