Taiwan Raises 2026 Growth Forecast to 11.05% on AI Boom

Taiwan’s export-led economy has become a major beneficiary of the global build-out in artificial intelligence infrastructure, with its semiconductor and server supply chains feeding demand for advanced chips, computing systems and related equipment. The surge is lifting both overseas shipments and corporate capital expenditure, making the Directorate-General of Budget, Accounting and Statistics’ outlook an important gauge of whether the technology cycle is broadening into faster economy-wide growth.

The Directorate-General of Budget, Accounting and Statistics on Aug. 14 raised its forecast for Taiwan’s 2026 economic growth to 11.05%, which would be the strongest expansion in 39 years, citing robust AI demand that is driving exports and investment. The agency also lifted its forecast for annual consumer price inflation to 2.07%, as recurring conflict in the Middle East increased risks to energy and transportation costs.