Taiwan raises 2026 growth outlook as AI boom helps exports
Gross domestic product is expected to expand 3.54% in 2026
[TAIPEI] Taiwan lifted its forecast for economic growth next year as exports continue to surge on AI demand.
Gross domestic product is expected to expand 3.54 per cent in 2026, according to a statement from the statistics bureau in Taipei on Friday (Nov 28). That compares with the previous forecast of 2.81 per cent back in August. Exports were projected to grow 6.32 per cent, versus an earlier call of 2.19 per cent.
The bureau also said the economy was expected to grow by 7.37 per cent this year, compared with the previous forecast of 4.45 per cent.
The new estimates come as debate mounts over the business prospects for companies linked to the AI revolution. Earlier this month, Taiwan Semiconductor Manufacturing reported its slowest monthly revenue growth in more than a year. The main chipmaker to AI leader Nvidia Corp posted a 16.9 per cent rise in sales for October, though that did roughly track with the average analyst estimate.
Taiwan’s economy has benefited from roaring exports this year. In October, outbound shipments surged at the fastest pace since 2010, largely due to massive demand for the chips and servers powering AI. Exports to the US skyrocketed 144.3 per cent to a record – underscoring Taiwan’s key role in the tech supply chain as companies like Meta Platforms and OpenAI race to build AI infrastructure.
Roaring tech exports have eased worries about US President Donald Trump’s trade war. Many analysts had worried that tariffs would hit Taiwan’s economy, especially in the second half of 2025, but since many tech goods have mostly been exempted from the duties, that hasn’t come to pass.
The Trump administration hit Taiwan with a 20 per cent tariff rate on July 31 – a level that is higher than what the US has levied on South Korea and Japan. Officials in Taiwan have indicated they are trying to clinch a better deal with Washington but that has proven elusive so far. BLOOMBERG
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