Yuanta raises GDP forecast to 8.72%PRESSURE: Rising oil prices would directly reduce GDP by 0.43 percentage points due to increasing consumer expenditure on fuels and production costs, Yuanta saidBy Chen Cheng-hui / Staff reporterTaiwan’s economic activity this year would gain support from firms’ inventory replenishment and artificial intelligence (AI)-related demand, even though the ongoing Middle East conflict threatens to push inflation higher, Yuanta Securities Investment Consulting Co (元大投顧) said yesterday. The nation’s GDP is forecast to grow 8.72 percent year-on-year this year, up from the 5.3 percent expansion estimated in January, while consumer price index (CPI) is projected to increase to 1.83 percent from 1.59 percent, Yuanta said in a report. Regarding its lifting CPI growth forecast by 0.24 percentage points to 1.83 percent, Yuanta said the upward revision is primarily due to imported inflation caused by the conflict in the Middle East and soaring international oil prices. Rising energy prices would directly reduce GDP by 0.43 percentage points by increasing consumer expenditure on fuels and raising production costs, it said. Indirectly, they would trim GDP by another 0.15 percentage points by slowing down global demand and affecting Taiwan’s exports, it added.

Source: Taipei Times March 30, 2026 17:13 UTC