The think tank’s previous forecast, made in January, had gross domestic product expanding 4.14% this year. The latest prediction is in line with a change made in March by the Directorate General of Budget, Accounting and Statistics that raised its forecast for the 2026 gross domestic product to 7.71% from 3.54%.
For the first quarter, the institution estimated that growth of 13.19% is possible, showing that Taiwan’s economy is growing rapidly, per UDN. However, the rate is forecast to slow down during the year, from 8.3% in the second quarter to 6.05% in the third and 2.3% in the final quarter of 2026.
The consumer price index is likely to hit 1.98% for the year, just under the psychological barrier of 2%, according to the think tank. The prediction for 2027 issued on Friday was a slightly lower 1.83%.
The institution described Taiwan’s economic situation as “hot on the outside and warm on the inside,” per CNA. Global demand for AI products, semiconductors, and electronics is likely to fuel a surge in exports, while an improving labor market and rising stock prices are helping domestic demand.
Matthew Strong
Taiwan News, Staff Writer
Apr. 17, 2026