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Taiwan Raises 2026 Growth Forecast Above 9% on AI Chip Demand

Taiwan upgraded its economic growth projection for 2026, citing robust international appetite for semiconductors and tech components tied to artificial intelligence expansion. The island nation's revision reflects confidence that surging global demand for computing hardware will offset headwinds from Middle East tensions and rising energy costs.

The optimistic outlook contrasts with challenges facing other regional economies. Air cargo traffic rebounded in April after March weakness linked to geopolitical disruptions, with tonnage climbing 4% year-over-year even as capacity declined. Meanwhile, export prices strengthened globally as energy costs climbed and technology demand accelerated, reversing a three-year downward trend in pricing power.

Singapore's labor market faces moderation as employers adopt cautious wage policies amid geopolitical uncertainty. Taiwan's elevated growth forecast underscores how AI infrastructure buildout is reshaping regional economic trajectories.