Accra:The International Monetary Fund (IMF) has significantly increased its forecast for Taiwan's gross domestic product (GDP) growth in 2026 to 10.7 percent. This projection marks the highest rate in the Asia-Pacific region, driven by the ongoing boom in artificial intelligence (AI).

According to Focus Taiwan, the latest World Economic Outlook report shows this forecast is a significant rise from the 5.2 percent predicted in April, making Taiwan the only economy expected to achieve double-digit growth in 2026. This anticipated growth outpaces other regional economies, with Japan expected at 0.7 percent, South Korea at 3.3 percent, Singapore at 5.0 percent, and Hong Kong at 3.8 percent. China and the United States are projected to grow by 4.5 percent and 2.3 percent, respectively.

Despite the upgrade, the IMF's prediction remains lower than the 11.05 percent forecast by Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS) in August. The IMF attributes this growth to Taiwan's strong position in AI-related computing hardware production, alongside South Korea, which together account for 62 percent of net trade in this sector.

The IMF report also highlights the positive impact of technology as a demand shock, fueled by investments in AI and related infrastructure. Taiwan's current account surplus is projected to reach 22.0 percent of GDP in 2026, while the consumer price index is expected to rise to 2.0 percent. The unemployment rate is anticipated to remain stable at 3.4 percent.

Emma Rafaelof from the U.S.-based Semiconductor Industry Association expressed optimism about AI's growth, emphasizing the need for cross-border cooperation to harness its potential. She called for collaboration among the United States, Taiwan, and other economies to support AI expansion.