UBS has upgraded its forecast for Taiwan’s economic growth, citing strong exports and rising investment, and now expects gross domestic product to expand by 11% in 2026. If realized, the figure would mark Taiwan’s fastest growth rate in 39 years. 

In a report released on Wednesday, the Swiss bank said Taiwan’s outlook has improved due to sustained export momentum, expanding corporate capital expenditure, and spillover effects from growing demand for artificial intelligence technologies. UBS previously projected 9.9% growth but raised the estimate as recent data exceeded expectations. 

UBS senior Asia economist William Deng (鄧維慎) said Taiwan’s exports have remained stronger than anticipated, with capital spending continuing to rise. He expects second-quarter GDP growth, due July 31, to exceed 10% year-on-year, adding that momentum should remain solid through the second half despite a higher comparison base.

Deng also noted that AI-driven growth is spreading beyond the technology sector, boosting traditional industries such as metals and machinery while strengthening consumer spending. Rising incomes and wealth effects linked to AI have supported retail sales. Meanwhile, government revenues have surged, reflecting stronger corporate profits and increased tax intake, further reinforcing Taiwan’s economic outlook.