ADB raises Taiwan’s GDP growth forecast to 11% — Taipei Times

The Asian Development Bank has raised its forecast for Taiwan’s GDP growth in 2026 from 9.5% to 11%. The forecast for 2027 was also revised upward, from 4% to 5%, Taipei Times reports.

Technology exports and AI

The ADB expects Taiwan to post the fastest economic growth among the 50 Asia-Pacific economies covered by the bank. In the first half of the year, Taiwan’s economy grew by 14.1%, the fastest pace in five decades. In the second quarter, GDP increased by 12.9% amid strong demand for microchips and technology products.

Taiwan’s exports of technology goods in US dollar terms rose by 65% in the first half of the year, while real exports increased by 28%. At the same time, imports grew by 22% as companies increased investment in AI-related capacity ahead of expected demand.

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Consumption and inflation risks

Growth was not limited to exporters. Private consumption increased by almost 6% in the first half of the year, after 1% last year, while capital investment rose by nearly 10%. The ADB links improved consumer confidence to stock market growth, stable housing prices and higher wages outside the technology sector.

The bank forecasts slower growth next year due to a possible reduction in investment in data centers and computing capacity after facilities approach their planned capacity. The inflation forecast for 2026 was kept at 2%, while the forecast for 2027 was lowered from 1.8% to 1.7%. Among the risks to the economy, the ADB cited prolonged hostilities in the Middle East, higher energy and food prices, new US trade measures, tighter global financial conditions and a possible sharp slowdown in AI investment.