Taiwan Q2 GDP Growth Loses Momentum

Taiwan’s economy expanded 12.92% year-on-year in the second quarter of 2026, beating market expectations of 10.8% but slowing from a multi-decade high of 14.55% in the previous quarter, preliminary estimates showed. The latest reading marked the weakest economic growth since Q3 2025, as external demand lost momentum, with exports of goods and services growth easing to 21.64% from 35.76% in Q1, while imports slowed to 18.27% from 26.34%. Meanwhile, domestic demand strengthened, supported by firmer household consumption, which rose to 5.88% from 4.74% previously, and gross capital formation, which accelerated to 15.14% from 5.92%. In contrast, government spending moderated to 3.22% from 4.06%. On a seasonally adjusted quarterly basis, Taiwan’s economy grew 2.39% in Q2 2026, accelerating from 1.69% growth in the first quarter.

Taiwan’s economy expanded by 14.55% year-on-year in Q1 2026, accelerating from an upwardly revised 12.95% in Q4 2025 and surpassing preliminary estimates of 13.69%. It marked the strongest economic growth since Q3 1978, supported by robust demand for AI technologies and related infrastructure, despite lingering risks from Middle East tensions that could threaten momentum. Domestic demand surged to 5.0% from 1.08% in Q4, primarily driven by stronger household consumption (4.74% vs 3.08%) and government spending (4.06% vs 0.77%). Gross fixed capital formation also accelerated (6.21% vs 4.28%). On the external front, exports of goods and services eased but remained strong (35.76% vs 40.02% in Q4), while imports of goods and services increased further (26.34% vs 25.88%). On a seasonally adjusted quarterly basis, Taiwan’s economy grew by 1.69% in Q1 2026, slowing sharply from an upwardly revised 6.51% expansion in the previous quarter.

Taiwan’s economy grew by 13.69% year-on-year in Q1 2026, accelerating from 12.65% in Q4 2025 and beating market expectations of an 11.3% gain, preliminary estimates showed. It also marked the strongest economic expansion since Q4 1986, continuing to be supported by robust demand for AI technologies and related infrastructure, despite lingering risks stemming from Middle East tensions that could threaten the momentum. Domestic demand surged to 4.83% vs 0.86% in Q4 2025, driven by stronger household consumption (4.89% vs 3.45%) and government spending (3.91% vs 0.75%), alongside a sharp rebound in gross capital formation (5.2% vs -3.39%). On the external front, exports of goods and services eased to 35.35% vs 38.81%, while imports rose to 27.07% vs 24.59%. On a seasonally adjusted quarterly basis, Taiwan’s economy moderated to 2.84% in Q1 2026 from 5.43% growth in the previous quarter.