DBS Bank has upgraded Taiwan’s GDP growth forecast for this year to 4.2%, up from 3.5%, driven by robust demand for AI technology and exports. At a Taipei news conference, DBS senior economist Ma Teiying noted the upgrade exceeds the local official forecast of 3.94%. The demand surge is linked to generative AI, which has significantly increased the need for AI chips across major U.S. tech companies’ data centres. Additionally, AI integration in consumer electronics is expanding, with AI-capable laptops and smartphones expected to see significant market share increases by 2027. Despite a promising tech sector, recovery in non-tech manufacturing remains slow, impacted by reduced Chinese demand and cross-strait tensions. DBS predicts a 2.2% inflation rate for Taiwan and anticipates a robust property market driven by economic gains.