Key facts
- Taiwan's central bank expects strong technology demand to drive exports and private investment into 2027.
- The bank forecasts economic growth of 5.82% for next year.
- Geopolitical risks and weather conditions are the main uncertainties affecting inflation.
TAIPEI, Oct 27 (Reuters) - Taiwan's central bank said on Tuesday that strong technology demand would drive exports into next year, though economic growth in 2027 will likely moderate after this year's high base. Taiwan is a major semiconductor manufacturer and home to TSMC, the world's largest contract chipmaker and supplier to companies like Nvidia, which are powering the trend towards AI. The central bank said in a report to lawmakers that demand for emerging technology applications is expected to remain strong, which should continue to drive Taiwan's exports and private investment. However, because this year's base for economic growth is relatively high, the bank forecasts the economy to expand 5.82% next year, which still represents steady growth. The central bank last month raised its 2026 economic growth forecast to 11.48% from the previous prediction of 9.45% given in June. Geopolitical risks and weather conditions are the main uncertainties affecting the future trajectory of inflation in Taiwan, the central bank said.