Bangkok:Economists at the International Monetary Fund (IMF) and World Bank annual meetings noted that strong demand for artificial intelligence (AI) chips is enhancing Taiwan's economic outlook. They advised the country to leverage this boom to diversify its economy and mitigate market risks.
According to Focus Taiwan, the IMF recently increased its forecast for Taiwan's economic growth in 2026, predicting a rise from 5.2 percent in April to 10.7 percent. This update positions Taiwan as the sole economy expected to achieve double-digit growth this year.
Iyabo Masha, director of the Intergovernmental Group of Twenty-Four (G24), stated that Taiwan's growth is primarily fueled by its semiconductor industry, which is experiencing a surge in demand from the AI sector. She anticipates that the industry could continue its expansion over the next two to three years, although growth may decelerate as the sector stabilizes. Masha emphasized the importance of Taiwan utilizing the current economic expansion to invest in industries beyond technology.
Eric LeCompte, executive director of Jubilee USA Network, emphasized the potential of AI to drive strong growth in Taiwan and other economies, despite global economic struggles. However, he cautioned against excessive optimism regarding AI, warning that it could lead to inflated asset prices and potential market crashes if expectations are not met. LeCompte stressed the need for Taiwan to diversify its economic growth strategies and job sector to reduce risk and enhance long-term resilience.
