Taiwan Central Bank Raises 2026 Growth Forecast to 7.28% as AI Boom Drives Investment and Exports

Taiwan’s economy is closely tied to global demand for semiconductors and cloud infrastructure. Google, Amazon, Meta and Microsoft, the four major cloud service providers, are expected to spend a combined $630 billion–$670 billion on capital expenditure in 2026, up 52%–62% from a year earlier. That spending is driving exports of Taiwanese AI servers and chips as well as private-sector capacity expansion, making it a key source of growth for the year.

On March 19, the Central Bank of the Republic of China (Taiwan) sharply raised its 2026 economic growth forecast to 7.28% from the 3.67% projected in December 2025 and lifted its CPI forecast to 1.80%. Governor Yang Chin-long told lawmakers on March 30 that he remained cautiously optimistic. If oil prices average $100 for the full year, CPI growth is estimated to reach 1.9%, but he said there were no signs of imported inflation at this stage.