Booming Taiwan to Raise 2026 Growth Outlook on AI, Trade Deal

vzp[r90xbabim}mx7irs]52e_media_dl_1.png BloombergArticle content(Bloomberg) — Taiwan is set to upgrade its forecast for economic growth this year even after a torrid 2025 on signs the AI boom has room to run and a final trade deal with the US.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe statistics bureau in Taipei will release its outlook for 2026 at 4 p.m. on Friday — its first prediction since a 3.5% call in November. That forecast was several weeks before Taiwan and the US agreed to slash tariffs on goods from the self-governed island, a pact they just signed.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentTaiwan’s National Development Council, a planning agency, recently set its 2026 growth target at 4.56%.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“It is likely that they will have to revise up their 2026 forecast,” said Michelle Lam, Greater China economist at Societe Generale SA. Even so, she said the impact of the trade deal “will likely be marginal” since chip-related products — the bulk of Taiwan’s US-bound exports — are already exempt from the duties because they were subject to a separate probe.Article contentThe new outlook will come as a slew of financial institutions boost their calls for an economy that last year grew at the fastest pace since 2010 — some of them in eye-popping fashion. This week, Bank of America Corp. nearly doubled its projection on “relentless global demand” for the tech hardware that Taiwanese companies make and a more stable currency, among other reasons.Article contentThe increased optimism is underpinned by Taiwan’s roaring exports. Outbound shipments surged some 70% in January, the fastest pace in 16 years.

Taiwan Semiconductor Manufacturing Co., the main chip supplier to Nvidia Corp. and Apple Inc., has said it plans to boost spending in 2026 and recently reported a 37% jump in January revenue. Those figures come as Alphabet Inc., Meta Platforms Inc., Amazon.com Inc. and others step up spending to develop artificial intelligence capabilities.Article contentArticle contentOn Thursday, the US and Taiwan finalized a trade agreement to cut duties, boost market access for American products in Asia, and channel billions of dollars into American energy and technology projects. The signing formalizes an agreement announced in January to lower tariffs on goods from the self-governed island to 15% from 20%.Article contentThe AI buildout has propelled Taiwan stocks to new highs. The benchmark Taiex has advanced at least 25% for three straight years, and so far in 2026 it is up 16% to a record. The Taiwan dollar snapped a three-year losing streak in 2025, climbing more than 4% versus the greenback. It has held steady so far this year.Article contentStill, other areas of the economy are expanding much more slowly than exports. In November, the statistics bureau said private consumption would grow just 2.43% this year.Article content—With assistance from Cynthia Li and Neha D’silva.Article contentTrending Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Stellantis wants to build cars at idled Brampton plant: Canada CEO Autos As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Stellantis wants to build cars at idled Brampton plant: Canada CEO Autos As Canadian bond yields fall, watch for fixed rates to follow Mortgage Rates