Standard Chartered Raises Taiwan 2026 GDP Forecast to 9.5%

Standard Chartered has raised its 2026 growth forecast for Taiwan to 9.5% from 7.6%, citing stronger-than-expected first-quarter expansion and surging artificial intelligence demand that is boosting exports, semiconductor production and investment.

The Taiwan AI economy outlook follows first-quarter GDP growth of 13.7% year on year, marking the fastest quarterly expansion in nearly four decades.

The bank said exports surged 35.3% during the quarter as global demand for AI-related semiconductors and advanced technology supply chains accelerated.

Tommy Wu, Standard Chartered’s senior economist for Greater China and Asia, said artificial intelligence is reshaping Taiwan’s growth trajectory, although gains are increasingly concentrated within the technology sector.

Wu warned that traditional industries such as metals, machinery and textiles continue to lag behind the booming semiconductor industry.

Standard Chartered expects Taiwan’s central bank to hold interest rates at 2% this year, although the risk of further rate increases has risen.

The forecast upgrade reinforces Taiwan’s strategic importance within the global AI supply chain.