UBS Raises Taiwan's GDP Forecast to 11% Amid AI Boom
UBS Group AG has increased its GDP growth forecast for Taiwan to 11% for the year, up from a previous estimate of 9.9%. This adjustment is attributed to the ongoing boom in artificial intelligence (AI), which is significantly impacting Taiwan's economy beyond the technology sector. The growth is supported by strong exports, capital investment, and domestic demand. Taiwan's fiscal position has improved with consecutive years of surpluses, bolstered by its role in the global AI hardware supply chain. The government has implemented cash handouts to stimulate the economy, and lawmakers are considering further measures. The AI boom is also revitalizing traditional industries, such as metals and machinery, and boosting retail sales. Additionally, Taiwan's export competitiveness is expected to benefit from recent changes in the US tariff regime.