Standard Chartered raises Taiwan GDP growth forecast to 12.8% — Taipei Times
Standard Chartered has raised its forecast for Taiwan’s economic growth for the second time: it expects GDP to increase by 12.8% in 2026 and by 7.5% in 2027. The bank’s previous estimates were 11.5% and 6.5%, respectively, Taipei Times reports.
AI demand supports exports
Standard Chartered attributes the forecast revision to a boom in artificial intelligence investment, which is driving technology exports and corporate capital expenditure. In the third quarter, Taiwan’s economy grew by 14.36% year-on-year, exceeding market expectations.
Tommy Wu, the bank’s senior economist for Greater China and North Asia, said that the economic impact of AI development extends beyond exports and is increasingly affecting investment and consumption. According to him, traditional industries are also showing a recovery: exports of metal, mineral and plastic products increased at double-digit rates.
Record shipment volume
Last month, Taiwan’s exports rose by 58.9% year-on-year to a record US$96.76 billion. It was the first time monthly overseas shipments exceeded US$90 billion. According to Taiwan’s Ministry of Finance, the country’s exports have been growing for 36 consecutive months.
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The bank also believes that strong export momentum is beginning to support domestic demand and the gradual recovery of household consumption. According to Standard Chartered, AI-related demand and business investment are expected to remain the main growth drivers in 2027.
Inflation assessment
The bank left its forecast for consumer price index growth in 2026 unchanged at 2.1%. At the same time, it raised its 2027 inflation estimate from 2% to 2.1%. Standard Chartered cited uncertainty over global energy supplies among the risks, which could raise energy prices and the cost of industrial goods due to more expensive imports.
Taiwan’s Directorate-General of Budget, Accounting and Statistics is due to update its own economic growth forecast on November 27.
