TAIPEI (Taiwan News) – The government revised its prediction for the gross domestic product in 2026 upward by 4.17% to 7.71%, reports said Friday.

In November, the Directorate General of Budget, Accounting and Statistics forecast the economy would expand 3.54% this year, the Liberty Times reported. The drastic change is the result of better-than-expected exports and due to the certainty offered by the tariff agreement with the US unveiled earlier Friday.

The government also slightly adjusted the growth estimates for the past year. GDP expanded 8.68% during 2025, instead of the 8.63% forecast last month. The growth rate accelerated during the year, from 5.54% during the first quarter to 7.71% for the second quarter. The economy grew 8.42% in the third quarter before reaching 12.65% in the final quarter.

The surge was the largest rise for any quarter in 38 years. For the whole year, Taiwan’s economic growth was higher than Singapore’s 4.8%, Hong Kong’s 3.5%, and South Korea’s 1%.