Tech Demand Surges, BofA Securities Raises Taiwan's 2026 Growth Forecast to 12%

According to Bank of America Securities, Taiwan's economic growth in 2026 will lead among Asian economies. The growth rate of 12% could be Taiwan's fastest since 1987, according to data compiled by Bloomberg.

Bank of America Securities also raised its 2026 growth forecast for emerging Asian markets (excluding China) from the previous estimate of 4.9% to 5.9%, and expects expansion of 5.8% in 2027.

The report indicates that despite persistent geopolitical uncertainties, strong global demand for technology products continues to support resilient growth in emerging Asian markets.

Given Taiwan's and South Korea's leading positions in advanced semiconductor manufacturing, both countries are at the core of this upswing cycle.

The Directorate-General of Budget, Accounting and Statistics last month released its latest forecast, predicting economic growth of 9.64% in 2026, an upward revision of 1.93 percentage points from the February forecast, and the highest since 2011. Taiwan's economic growth rate in the first quarter of this year was 14.55%, the highest quarterly level in nearly 48 years.

Bank of America Securities predicts that Taiwan's central bank will raise interest rates by 12.5 basis points in the third and fourth quarters, and in the first quarter of 2027. (Compiled by: Liu Shu-chin) 1150626