Taiwan Raises 2026 Growth Forecast to 11.05% on AI Boom

Taiwan's authorities have revised their economic growth forecast for this year into the double digits, driven by the artificial intelligence boom.

Local media reported that Taiwan's Directorate-General of Budget, Accounting and Statistics (DGBAS) projected in its latest economic outlook released today (August 14) that this year's gross domestic product (GDP) growth rate will reach 11.05%.

This is 1.41 percentage points higher than the 9.64% forecast released in May.

If the DGBAS projection becomes a reality, Taiwan will record its highest economic growth rate since 1988.

Taiwanese authorities explained that the upward revision stems from stronger-than-expected global demand for AI infrastructure construction, which is fueling simultaneous booms in exports, private consumption, and private investment.

Taiwan recorded a high economic growth rate of 8.76% last year, but its growth momentum is expected to accelerate further this year, propelled by AI-related demand.

After initially forecasting this year's economic growth at 7.71% in February, the DGBAS sharply raised it by 1.93 percentage points to 9.64% in May, and has now raised the projection once again.

The economic growth rate for the second half of this year is projected at 8.27%, while next year's annual growth is forecast at 6.04%.

However, key uncertainties for Taiwan's future economy include Middle East tensions, energy prices, U.S. tariff policies, and the question of whether global corporations will continue to expand their AI-related investments.
※ Please note: This article was translated by AI and may contain errors.