The Directorate General of Budget, Accounting and Statistics has raised its
forecast for GDP growth in 2026 to 9.6 percent -- thanks to
stronger-than-expected global demand for AI.

The DGBAS increased its GDP growth forecast by 1.9 percentage point from its
February estimate. It would be the highest annual growth rate since 2010,
when the economy grew by 10.25 percent.

Taiwan's economy grew by 14.6 percent in the first quarter, the highest
quarterly growth rate in 48 years.

The DGBAS also upgraded growth forecasts for Taiwan's exports and private
consumption in 2026.

In announcing its forecasts, it cited accelerating momentum in AI development
as well as strong global demand for Taiwan-made high-end chips, servers and
other key electronic components.

The stats agency expects Taiwan's merchandise and service exports to grow by
nearly 20 percent this year, while imports are tipped to grow 17 percent.

Meanwhile, a surging stock market and wage hikes have boosted disposable
income, with consumption expected to grow by 3.6 percent in 2026, up from the
previous estimate of 2.5 percent.

CNA_JvW