Taiwan’s economy saw outstanding growth in 2025, emerging as an outlier not just in Asia but also worldwide. In its recently released forecast for 2026, the Institute of Economics at Academia Sinica sharply revised its estimate for GDP growth to 7.41% for 2025, up 4.48pp from its previous estimate of 2.93%. Although growth in 2026 is likely to slow down due to the high baseline in 2025, AI-related industries will continue to prop up external demand and investments in Taiwan.