Taiwan GDP Forecast Raised to 10.38% as AI Demand Fuels Balanced Growth

The Taiwan Economic Research Institute lifted its 2026 GDP forecast from 7.56% to 10.38%, marking the third domestic think‑tank to project growth above 10% this year. The institute said growth will be jointly driven by exports, investment and private consumption, with AI‑related hardware demand underpinning the outlook.

AI applications are expected to spread beyond semiconductors and servers to traditional manufacturing sectors such as chemicals, advanced PCBs, robotics components, textiles and smart factories. The institute highlighted that firms that adopt AI‑driven design, demand forecasting and digital management could improve product value and efficiency, helping them break out of low‑margin competition. It also urged the government to expand public‑sector construction, digital transformation and industrial‑upgrade investment to sustain the new growth momentum.