TAIPEI (Taiwan News) — Taiwan Research Institute raised its forecast Tuesday for Taiwan's economic growth to 9.33% this year, citing strong global demand for AI-related technologies.
TRI had forecast in December that Taiwan's economy would grow 3.46% in 2026, per UDN. Six months later, it has raised that estimate by 5.87 percentage points.
The institute also increased its forecast for annual consumer inflation from 1.78% to 1.96%. It projects exports of goods and services to grow 19.62% this year, while imports are expected to rise 16.34%.
According to TRI, Taiwan's economy has outperformed expectations amid rapid growth in AI applications and strong demand for high-performance computing and cloud data centers. Exports, investment, and industrial production have been the main drivers of growth.
The institute said exports of semiconductors, AI servers, electronic components, and ICT products have surged, pushing export orders and shipments to record highs, according to UDN. Strong demand has also prompted businesses to expand capacity and increase capital spending.
Improved corporate earnings, wage growth, and stock market gains have helped support a moderate recovery in private consumption. Household spending has gradually strengthened alongside broader economic growth.
TRI said exports and investment remain the primary engines of Taiwan's economy, while private consumption continues to recover steadily, UDN reported.
