Taiwan Research Institute (TRI) expects Taiwan's economy to grow 9.33% in 2026, sharply up from an earlier 3.46% growth forecast, thanks to booming demand for artificial intelligence, according to the think tank's Economic Outlook report on Tuesday.

The think tank said strong demand for AI applications, high-performance computing and cloud data centers is expected to support exports and investment. Exports of goods and services are projected to rise 19.62% this year, while private investment growth is forecast at 6.16%, according to the report.

TRI warned that Taiwan remains heavily dependent on semiconductor and ICT industries, leaving the economy vulnerable to sector-specific downturns, and called for more balanced industrial development and stronger domestic demand to sustain long-term growth.