BofA Nearly Doubles Taiwan 2026 GDP Forecast on ‘Relentless’ AI

significantly boosted its prediction for Taiwan’s economic growth this year, adding to a slew of upgrades even after a rip-roaring 2025 propelled by AI demand.

The firm revised its projection to 8% from 4.5% on “relentless global demand” for the tech hardware that Taiwanese companies make, according to a note dated Tuesday by analysts including Xiaoqing Pi.

The increase “reflects our sustained optimism over Taiwan’s technology‑driven expansion and is reinforced by several recent developments,” including , and spending by tech companies, BofA added.

The bank joins , and others in even after its economy expanded at the fastest pace since 2010 last year, . Officials in Taipei recently said growth in the fourth quarter came in at more than 12%, .

Underscoring optimism that AI will continue to shine this year, — .’s main chipmaker — recently said it was earmarking as much as $56 billion in capital spending, a projection that was stronger than anticipated. That figure comes as Alphabet Inc., Meta Platforms Inc., Amazon.com Inc. and others .

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BofA said it doesn’t expect Taiwan’s central bank to raise its policy rate this year “given still‑subdued inflation, stagnant services wages, weak non‑tech sectors and continued cooling in the real‑estate market.”

It also highlighted risks to its forecasts from issues such as “geopolitical dynamics.”

Taiwan sits at the center of US-China tensions, and Washington’s . Such deals could imperil President Donald Trump ’s planned visit to Beijing in April to meet Chinese leader Xi Jinping , the Financial Times has reported , citing people familiar with the matter.