Will Taiwan's Economic Growth Rate Reach 10% This Year? Minister Says 'Opportunity Exists'

During the Legislative Yuan's Economic Committee review of the 2026 central government budget, Democratic Progressive Party legislator Lai Jui-long raised concerns about financial institutions' predictions that Taiwan's GDP growth could reach 10% this year. In response, Minister of Economic Affairs Kung Ming-hsin confirmed that the Directorate-General of Budget, Accounting and Statistics (DGBAS) has upgraded the forecast to 9.64%, stating that 'the opportunity exists.'

Kung highlighted that certain industries are performing better this year than last, particularly the machinery sector, which saw double-digit export growth in the first five months—exceeding expectations. He also noted that in addition to a special budget of NT$46 billion for traditional industries, the Executive Yuan allocates over NT$10 billion annually to support small and medium-sized enterprises (SMEs). This year, President Lai Qing-de proposed a NT$100 billion 'Accelerated Revitalization Program for SMEs and Traditional Industries,' underscoring the government's ongoing commitment to SME development.

On Middle East tensions and oil reserve security, Kung stated that supply for the entire year is secure. With the U.S. and Iran reaching an agreement, oil price trends have become clearer and are now clearly trending downward, which will be appropriately reflected in Taiwan's energy pricing.

The American Chamber of Commerce in Taiwan released its 2026 Taiwan White Paper yesterday, prioritizing 'Energy and Infrastructure Resilience.' The report recommends treating stable energy supply and grid resilience as national security issues.

Prior to the release, Kung mentioned in an interview that power plants have already been designated as critical infrastructure, and budgets have been allocated to strengthen grid resilience and enhance overall safety.