The outlook follows a standout last year, when Taiwan delivered one of Asia’s strongest economic performances, with GDP growth estimated at 7.2 percent, while the nation’s per capita GDP is projected to reach US$38,000, surpassing Japan and South Korea for the first time, DBS said. DBS economist Ma Tieying (馬鐵英) said AI-driven momentum is expected to persist this year, although growth is likely to moderate amid more realistic profitability expectations, elevated equity valuations and rising corporate leverage. Photo: AFPIn its base-case scenario, DBS projects GDP growth of 4 to 5 percent, assuming AI demand remains solid, but cools, US semiconductor tariffs stay moderate and the US’ tariffs on Taiwan are slightly reduced through trade negotiations. By contrast, Taiwan’s non-technology manufacturing is expected to remain weak, with exports continuing to contract amid the lingering possibility of tariffs, DBS said. Overall, Taiwan remains well positioned to capitalize on the global AI wave while evolving into higher-value manufacturing and knowledge-based services, DBS said.

Source: Taipei Times January 08, 2026 16:32 UTC