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BackHow strong is Taiwan's economic growth? The IMF revised it up to 10.7% in one breath. The "driving force behind it" is exposed.
How strong is Taiwan's economic growth? The IMF revised it up to 10.7% in one breath. The "driving force behind it" is exposed.
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自由时报1 hour agoBusiness1 min readChinaView original

How strong is Taiwan's economic growth? The IMF revised it up to 10.7% in one breath. The "driving force behind it" is exposed.

imfTaiwan economyeconomic growth

Quick Look

  • The latest forecast from the International Monetary Fund (IMF) points out that Taiwan's real economic growth rate will reach 10.7% in 2026, a significant increase of 5.5 percentage points from the April forecast, ranking first in the Asia-Pacific region.
  • The main driving force comes from the AI ​​boom driving demand for hardware.
  • Taiwan and South Korea account for 62% of the global net trade volume of AI computing hardware.

AI-generated summary

Why It Matters

The IMF's latest forecast points out that Taiwan's real economic growth rate will reach 10.7% in 2026, mainly driven by the AI ​​boom.

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The IMF's latest forecast reveals that Taiwan's economic growth this year is expected to be 10.7%. (File photo)

[Financial Channel/Comprehensive Report] Taiwan’s economic growth rate is expected to exceed 10% this year! The latest forecast from the International Monetary Fund (IMF) points out that Taiwan's real economic growth rate will reach 10.7% in 2026, a significant increase of 5.5 percentage points from the 5.2% forecast in April this year, ranking first in the Asia-Pacific region and one of the few economies in the world expected to achieve double-digit growth.

The main driving force behind Taiwan's economic performance is that the artificial intelligence (AI) boom continues to drive demand for related hardware equipment and infrastructure. The IMF pointed out that Taiwan and South Korea together accounted for 62% of the global net trade volume of AI-related computing hardware, highlighting the important positions of the two places in the global AI supply chain. However, the IMF's forecast is still lower than the 11.05% growth forecast released by the Accounting and Accounting Office of Taiwan's Executive Yuan in August.

Looking at the world, the IMF predicts that the global economy will grow by 3.1% this year, the same as the April forecast, slightly higher than the 3.0% forecast in July, and is expected to rise to 3.4% next year. Under the forecast scenario that energy supply gradually returns to normal, the economic growth rate of the United States this year and next will be 2.3%, supported by consumption, fiscal policy and technology investment; the growth prospects of the Eurozone and the United Kingdom are also generally stable.

However, global inflationary pressures have not completely subsided. The IMF predicts that the overall global inflation rate will rise to 4.7% this year from 4.1% last year, reflecting the continued impact of energy prices and other cost pressures on the global economy.

What to Watch

AI outlook — possibilities, not facts

  • The global economy will rebound to 3.4% next year

    Possible · Within months

Open Questions

  • What is the actual impact of rising global inflation on Taiwan’s real purchasing power?

Related Topics

imf
OrganizationsInternational Monetary FundAccounting and Accounting Office, Executive Yuan
PlacesTaiwansouth koreaUnited StatesEurozone
TopicsTaiwan economyeconomic growthartificial intelligenceaiInflation
This article was originally published by 自由时报.

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