Taiwan raised its 2026 gross domestic product growth projection to 11.05% from 10.1%, the government said on Wednesday, citing a rebound in global semiconductor demand and a pickup in domestic capital expenditure.
The Ministry of Economic Affairs maintained its 2025 growth forecast at 3.28%, unchanged from its previous estimate in November. The upgrade for 2026 reflects expectations of sustained recovery in the island’s critical electronics sector, which accounts for roughly a third of GDP.
Taiwan’s economy, heavily reliant on technology exports, has benefited from a surge in artificial intelligence-related chip orders, particularly from U.S. and Asian markets. The government also pointed to stronger-than-expected domestic investment in infrastructure and manufacturing capacity as contributing factors to the revised outlook.
The projection comes amid broader optimism about global semiconductor cycles, though risks remain from geopolitical tensions in the Asia-Pacific region and potential supply chain disruptions. The ministry did not provide a breakdown of sectoral contributions to the upgraded forecast.
Taiwan’s central bank has maintained a cautious monetary policy stance, balancing growth support with inflation control. The upgraded GDP outlook may influence future policy decisions, though no immediate changes to interest rates are expected.
