IMF Raises Growth Forecasts for South Korea and Taiwan

The International Monetary Fund raised its 2026 economic growth forecasts for South Korea and Taiwan, attributing the surge to a semiconductor supercycle and strong global demand for artificial intelligence hardware. In its October World Economic Outlook report, the organization increased South Korea's 2026 projection to 3.3 percent, up from 2.6 percent in July, and raised its 2027 forecast to 2.8 percent.

Taiwan's 2026 GDP growth forecast saw a sharper increase to 10.7 percent, up from 5.2 percent in April. This revision positions Taiwan as the highest-growing economy in the Asia-Pacific region and one of only three economies globally projected to achieve double-digit growth. The IMF identified South Korea and Taiwan as critical hubs, together sourcing 62 percent of net trade in AI-related computing hardware.

Government reactions varied by region. South Korea's Ministry of Finance and Economy noted that the revision exceeds the average for advanced economies but warned that Middle East tensions and high consumer prices remain risks. In Taiwan, the IMF's projection remains slightly lower than the 11.05 percent growth rate estimated by the Directorate General of Budget, Accounting and Statistics in August.