Economy

TIER Raises 2026 Taiwan GDP Forecast as AI Growth Stays Strong

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By TaiwanPlus

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One of Taiwan's leading economic think tanks has raised its forecast for the country's 2026 economic growth, even as technology stocks face heavy selling pressure. The Taiwan Institute of Economic Research (TIER) revised its 2026 GDP growth forecast to 12.34%, roughly two percentage points higher than its July estimate. TIER President Chang Chien-yi said investment linked to AI continues to drive economic momentum. While growth is expected to slow in 2027 from this year's rapid pace, Chang said the outlook remains positive. TIER forecasts Taiwan's economy will expand by about 6.45% next year, supported by continued AI investment and steady global economic growth. Chang also stressed that a slowdown in spending should not be interpreted as an economic standstill.

Taiwan’s GDP Forecast

One of Taiwan's top economic think tanks has raised its GDP growth forecast for 2026, despite last week’s massive sell-off of tech stocks.

The Taiwan Institute of Economic Research raised its prediction for Taiwan's 2026 economic growth to 12.34 percent, around two percentage points higher than its July estimate. TIER President Chang Chien-yi says AI momentum remains intact. He also expects growth next year to be slower but steady.

Chang Chien-yi (PRESIDENT, TIER):  
While this year has seen remarkably rapid growth, next year should see steady growth. Based on AI investment as well as global economic growth, TIER expects the economy to grow by around 6.45% [next year].

Chang also said tapping the brakes on spending does not mean the economy is coming to a full stop.