Taiwan’s statistics agency forecasts GDP growth of 11.05% in 2026, up from the 9.64% forecast issued in May. The island’s weighted stock index has risen over 56% year-to-date, driven by AI demand for its tech industry. Economists warn that this growth may not be sustainable, citing high concentration in semiconductors, risks of capex slowdown, geopolitical tensions with Beijing, and stagnant real wages. Taiwan’s ability to maintain its technological edge will be key to its long-term sustainability.
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