Al-Thawra Net/..
Taiwan’s government statistics agency predicted on Friday that the Taiwanese economy, supported by the technology sector, will record its fastest growth pace in 16 years in 2026, driven by strong demand for artificial intelligence technologies.
The agency revised its gross domestic product forecast to rise by 9.64 percent on an annual basis, which is the highest rate since 2010 when the economy recorded growth of 10.25 percent, compared to previous estimates issued in February at 7.71 percent, according to Reuters.
This performance comes in light of the pivotal role that Taiwan plays in the global artificial intelligence supply chains of major companies such as NVIDIA and Apple, led by the Taiwan Semiconductor Manufacturing Company (TSMC), the largest chip manufacturer in the world.
The agency also noted that strong demand for artificial intelligence supported the economy’s growth by 8.76 percent in 2025, the fastest growth rate in 15 years.
Estimates for GDP growth in the first quarter of 2026 were raised to 14.55 percent, which is the fastest quarterly expansion in about 48 years, compared to previous expectations of 13.69 percent.
In its statement, the agency said that demand for artificial intelligence, high-performance computing and cloud infrastructure exceeded expectations, with a clear increase in capital spending by cloud service providers.
In the same context, analysts pointed out that the strong momentum in growth reinforces expectations that the Taiwanese Central Bank will keep interest rates unchanged during the current year.
Kevin Wang, an analyst at Masterlink Investment Consulting, said that there are no inflationary pressures that require changing monetary policy, expecting interest rates to be stabilized without any adjustment during the year.
The Taiwanese Central Bank is scheduled to hold its next quarterly meeting on June 18.
The agency expects exports to rise by 39.77 percent in 2026, its fastest growth in five decades, compared to previous estimates of 22.22 percent.
It is also expected that the inflation rate will reach 1.93 percent in 2026, less than the central bank’s target of 2 percent, but slightly higher than previous expectations of 1.68 percent.
In a separate context, the Central Bank of Taiwan said in its annual report on financial stability that it will take “timely” measures to ensure financial stability, in light of the uncertainty associated with US tariffs, the weakness of the Chinese economy, and geopolitical tensions.
The bank indicated that these factors may negatively affect the global economy and increase risks to financial stability in Taiwan, stressing that it will closely monitor developments and take appropriate measures when needed.
He also stressed that he kept interest rates unchanged, while continuing a flexible exchange rate policy to support financial stability.
