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Taiwan AI boom lifts exports and keeps policy rate steady at 2%

Commerzbank says Taiwan’s July manufacturing output rose 25.6% year over year, while export orders jumped 61.9% year over year, supporting Q3 GDP growth of about 12.0% to 12.5%.

Reported · Written up by our desk · Central Banks

Commerzbank analysis highlighted Taiwan’s AI and high-performance computing demand as a key driver of accelerating industrial production and exports, with July manufacturing output and export orders pointing to robust third-quarter growth.

FXStreet relayed the bank’s view that July manufacturing output increased 26.9% year over year and export orders surged 61.9% year over year, after strong prior momentum. The technology sector led the gains, with output of computers, electronics and optical products rising 95.6% year over year, while electronic components climbed 22.7%.

The report said the strength also extended beyond pure technology, with machinery output up 19.8% year over year and basic metals rising 13.2%, while chemicals and autos remained weak.

Despite the rapid expansion, inflation was described as near 2.1%, which kept Taiwan’s central bank comfortable with holding its policy rate at 2%, according to Commerzbank via FXStreet. The bank projected Taiwan’s Q3 GDP growth around 12.0% to 12.5% year over year, following 12.9% in Q2, and noted the government raised its 2026 growth forecast to 11.05%.

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