Taiwan projects 2026 economic growth at fastest in four decades on AI demand

Taiwan's tech-reliant economy is expected to grow at its fastest pace in nearly four decades this year, the statistics agency said on Friday, upgrading its forecast due to strong AI demand.

Gross domestic product is now expected to be 11.05 percent higher than a year earlier, the agency said, the fastest growth since 12.75 percent was recorded in 1987, and revising upward the 9.64 percent forecast it issued in May.

Taiwan plays a leading role in fulfilling the demand for AI chips and technology from tech giants such as Nvidia and Apple, with the island being home to the world's largest contract chip manufacturer, Taiwan Semiconductor Manufacturing Co.

Strong demand for AI drove Taiwan's economy in 2025 to expand 8.76 percent.

The agency also revised up a notch its second-quarter 2026 economic growth view to 12.93 percent, versus a preliminary reading of 12.92 percent.

Giving its first forecast for next year, it said it expected Taiwan's economy to grow 6.04 percent in 2027.

Reuters

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓