TAIPEI (Taiwan News) — The International Monetary Fund on Tuesday raised Taiwan’s economic growth forecast for 2026 to 5.2%.
The IMF said in its latest World Economic Outlook report that global growth is expected to reach 3.1% this year, down from its January estimate of 3.3%, per AFP. It also lowered its growth forecast for China to 4.4% for this year, slightly below the 4.5% projected in January, while keeping its 2027 forecast unchanged at 4.0%.
The IMF cut its growth outlook for the Eurozone to 1.1%, citing “negative supply shocks” linked to the Iran War. As the war has disrupted oil and natural gas exports from the Persian Gulf, the IMF also sharply reduced its growth forecast for the Middle East and North Africa region to 1.1%, per Reuters.
The fund warned that Iran, Iraq, and Qatar would be particularly hard hit. Their economies are projected to contract by 6.1%, 6.8%, and 8.6%, respectively.
Based on its projections for Asian economies, Taiwan’s real GDP is expected to grow 5.2% this year, with the consumer price index (CPI) rising 1.5% and the unemployment rate at 3.4%, per CNA. This marks an upward revision of 3.1 percentage points from the IMF’s January estimate of 2.1%.
In its October outlook, the IMF had forecast Taiwan’s real GDP growth at 3.7% for 2025 and 2.1% for 2026, with CPI growth at 1.7%. It also expected Taiwan’s unemployment rate to remain at 3.4% for both years.
