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  賴子健 , CFA

  CFA

Taiwan's economic outlook is experiencing a significant uplift, driven by the burgeoning AI revolution and a recently cemented trade pact with the US. Economic growth forecasts for this year have been upgraded to an impressive 7.7%, a substantial increase from the 3.5% projection made in November. This revised outlook anticipates Taiwan's GDP reaching an unprecedented USD1tn, marking a historic achievement for the island. Fueling this robust growth is an expected surge in exports, now projected to rise by 22.2% in 2026, a sharp acceleration from the earlier 6.3% forecast. These positive revisions reflect a broad consensus among financial institutions, with Bank of America nearly doubling its growth prediction due to “relentless global demand“ for Taiwan's advanced tech hardware, including critical AI chips and servers. The enhanced capital expenditures by cloud providers, exceeding initial expectations, further underscore the formidable strength of AI-related infrastructure. The strategic trade agreement finalized between the US and Taiwan earlier this month is a pivotal catalyst, set to reduce average tariff rates on Taiwanese exports to the US from nearly 36% to ~12%. This landmark deal, hailed as a shift from “defense to offense“ by Taiwan Premier Cho Jung-tai, will cement Taiwan’s position as an economic powerhouse. The tangible impact of these developments is already visible in Taiwan's equities market, which has seen remarkable performance. The stock market has advanced by at least 25% for three consecutive years, with a further ~15% gain to a new record in 2026 alone. For institutional investors looking to capitalize on this strong structural uptrend in Taiwan equities, the Premia FTSE TWSE Taiwan 50 ETF presents an optimal and strategic investment vehicle to capture this solid growth story.

Feb 23, 2026