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Market Chatter: Fitch Raises Taiwan's Growth Projection for 2026, 2027 on Sustained AI Demand

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Fitch Ratings raised its forecast for Taiwan's economic growth this year to 9.4% and increased its 2027 projection to 4.8% from 4%, citing sustained investment and strong demand for AI-related products, Focus Taiwan reported Tuesday.

At the media briefing, the rating agency also reaffirmed Taiwan's AA sovereign rating with a stable outlook, reflecting its strong external finances, prudent fiscal management and competitive business environment, the report said.

Fitch said Taiwan's advanced manufacturing and semiconductor industry should continue to underpin exports and growth, although its export-driven economy remains exposed to external shocks and cross-strait tensions, according to the report.

The agency flagged weaker growth among major trading partners, softer global AI demand and heightened geopolitical risks as key downside risks, while warning that high energy costs could continue to weigh on utilities and energy-intensive industries, the news outlet said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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