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Taiwan Lifts 2026 Growth Outlook to 7.71% on AI Boom

The upgrade reflects surging AI-driven demand centered on TSMC’s chip production.

People sell products at their stall at a market in New Taipei City, Taiwan January 31, 2024. REUTERS/Ann Wang

Overview

  • Taiwan’s statistics office raised its 2026 GDP forecast to 7.71%, up from 3.54% projected in November.
  • Fourth-quarter 2025 growth was revised to 12.65% year on year from 12.68%, and full-year 2025 was lifted to 8.68%, the fastest pace in 15 years.
  • The agency said further upward revisions are more likely than downgrades given sustained AI-related capital spending by major cloud providers.
  • Exports in 2026 are now projected to rise 22.22% versus a prior estimate of 6.32%, while inflation is forecast at 1.68%, below the central bank’s 2% target.
  • Officials flagged risks from potential cuts or delays in U.S. cloud capex and broader geopolitical pressures, and one analyst expects rates to stay on hold through June.