Taipei, May 2 (CNA) S&P Global Ratings has affirmed Taiwan's "AA+" long-term and "A-1+" short-term issuer credit ratings, citing the country's strong external asset position, healthy fiscal conditions and monetary flexibility.
In a statement released earlier this week, the ratings agency said Taiwan's outlook over the next 24 months remained stable, supported by expectations that semiconductor exports will help offset pressure from geopolitical risks, the energy crisis and changing global trade conditions.
"Our ratings on Taiwan are anchored on its robust external position and strong economic support," S&P said. "Despite uncertainties related to global trade and the ongoing energy shock, we believe Taiwan's competitive export sector will continue to benefit from advancements in the technology sector."
S&P said the economic fallout from the war in the Middle East was likely to be offset by the government's proactive response to energy shocks and efforts by semiconductor firms, including Taiwan Semiconductor Manufacturing Co. (TSMC), to secure key manufacturing inputs.
With Taiwan playing an important role in the current artificial intelligence boom, its economy has remained robust over the past two years, S&P said.
The ratings agency noted that Taiwan's gross domestic product growth hit a 15-year high of 8.7 percent in 2025, driven by strong exports, particularly semiconductors and consumer electronics.
S&P forecast Taiwan's economy will grow by 6.3 percent in 2026, lower than the 7.71 percent forecast by Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS).
Although spending on defense and social benefits has risen and is likely to continue increasing, Taiwan's fiscal position remains healthy on the back of strong revenue growth, S&P said.
The agency said Taiwan's net general government debt as a share of GDP has been declining since 2012, forecasting that the ratio will stand at 22.4 percent by the end of 2026 and remain stable over the next three years.
S&P also described Taiwan's monetary flexibility as strong, saying the central bank has maintained sound monetary management and kept inflation low and stable despite ample liquidity in the financial system.
Slow demand growth, continued fuel subsidies and frozen electricity tariffs are expected to help keep inflation lower despite the ongoing energy price surge, S&P said.
The ratings agency forecast Taiwan's inflation will fall marginally to 1.6 percent this year, compared with the DGBAS forecast of 1.68 percent.
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