CHINA-TECHNOLOGY
Taiwan's Central Bank forecasts an economic growth rate of 5.82% in 2027, noting that demand for AI and other emerging technologies is expected to continue supporting exports and private investment. Global investment trends in the technology industry remain a significant variable in Taiwan's economic outlook. The image illustrates Taiwan's semiconductor industry.

【TAIPEI, Oct. 27】 Demand for artificial intelligence (AI) and other emerging technology applications is expected to remain strong through 2027, supporting Taiwan’s exports and private investment, the central bank said. However, with this year’s economic growth providing a high base of comparison, the bank forecasts growth will slow to 5.82% next year.

According to a Reuters report published Oct. 27, the central bank said in a report submitted to the Legislative Yuan that demand for emerging technology applications is expected to remain robust, supporting exports and private investment. Taiwan is a key hub in the global semiconductor supply chain, and chipmakers such as TSMC are also benefiting from rapidly growing demand for AI computing.

The central bank in September raised its forecast for Taiwan’s 2026 economic growth to 11.48% from 9.45%. If growth reaches that forecast, the economy could still expand at a relatively solid pace next year even as growth slows.

Taiwan’s export performance is closely tied to investment by the global technology industry. As cloud service providers continue expanding their data centers and companies increase their AI computing capacity, demand for advanced chips, servers and related electronic components remains a key source of support for Taiwan’s exports.

However, the central bank warned that geopolitical risks and weather conditions remain sources of uncertainty for Taiwan’s future inflation outlook. Any adjustment in global technology investment could also affect export growth, corporate capital spending and financial-market performance.

At the same time, although AI demand is driving expansion in high-tech industries, Taiwan’s economy continues to face challenges including uneven industrial growth, changes in overseas markets and international capital flows. Strong technology exports do not mean all industries and households will benefit to the same extent.

Markets will next focus on global technology companies’ capital-spending plans, Taiwan’s export data and the central bank’s latest assessment of inflation and economic growth. These factors will shape Taiwan’s economic outlook and monetary-policy discussions in 2027.