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Taiwan’s GDP is set to grow much faster than anticipated this year, according to the government’s statistics agency. AI-driven demand is surging, which has given a significant boost to the semiconductor supply chain. The projected economic growth for 2026 has been revised up to a staggering 9.64%, the highest figure in 16 years. Officials say that despite the high GDP growth rate of 8.76% year, the momentum is expected to continue into this year, showing that Taiwan’s domestic economy is extremely robust.

Stronger-than-expected demand for artificial intelligence, high-performance computing, and cloud infrastructure has fueled a major upward revision in exports, which are now projected to reach US$894.5 billion. That’s an increase of 39.77% from last year. In addition, soaring profits among listed companies and record highs in the stock market are expected to boost wages and dividend payouts, helping support growth in consumer spending and private investment.

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