Taiwan Lifts Growth Forecast to 9.45% on Nvidia-Driven AI Demand
NVDA•Taiwan’s central bank raised its 2026 GDP growth outlook to 9.45% from 7.25%, citing booming AI semiconductor demand from Nvidia, following an 8.68% expansion in 2025. The bank kept its benchmark rate at 2% while lifting its consumer inflation forecast to 1.91% after energy-driven CPI topped 2%.
1. Growth Forecast Increase
Taiwan’s central bank upgraded its 2026 economic growth projection to 9.45% from 7.25%, attributing the boost to surging AI-related semiconductor orders led by Nvidia. This outlook follows a record 8.68% expansion in 2025, the fastest in 15 years, driven by global AI deployment and strong export momentum.
2. Inflation Concerns and Rate Decision
Despite growth optimism, the bank held its benchmark discount rate at 2% and raised its CPI forecast to 1.91%, noting last month’s inflation spike above 2% due to rising energy costs. Two board members voted against the decision to maintain rates, urging closer monitoring of inflationary pressures before any future policy tightening.
