Taiwan Q2 GDP Growth Revised Slightly Higher

2026-08-14 08:32 By Czyrill Jean Coloma 1 min. read

Taiwan's economy expanded 12.93% year-on-year in the second quarter of 2026, slightly higher than the preliminary estimate of 12.92% but easing from 15.43% in the previous quarter.

It marked the slowest economic expansion since Q3 2025, as growth in exports slowed sharply to 21.24% from 35.41% in Q1, while imports eased to 18.25% from 25.41%.

In contrast, domestic demand strengthened to 8.83% from 5.73%, supported by stronger household consumption (5.91% vs 4.83%) and gross fixed capital formation (11.45% vs 8.04%), which more than offset slower growth in government spending (3.24% vs 4.29%).

On a seasonally adjusted quarterly basis, the economy expanded 1.39%, easing from 2.46% in the previous quarter and marking the weakest quarterly growth since Q1 2025.

Looking ahead, Taiwan raised its 2026 growth forecast to 11.05%, putting the economy on track for its first double-digit expansion since 2010, as the AI-driven chip sector continues to outperform.



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Taiwan Q2 GDP Growth Revised Slightly Higher
Taiwan's economy expanded 12.93% year-on-year in the second quarter of 2026, slightly higher than the preliminary estimate of 12.92% but easing from 15.43% in the previous quarter. It marked the slowest economic expansion since Q3 2025, as growth in exports slowed sharply to 21.24% from 35.41% in Q1, while imports eased to 18.25% from 25.41%. In contrast, domestic demand strengthened to 8.83% from 5.73%, supported by stronger household consumption (5.91% vs 4.83%) and gross fixed capital formation (11.45% vs 8.04%), which more than offset slower growth in government spending (3.24% vs 4.29%). On a seasonally adjusted quarterly basis, the economy expanded 1.39%, easing from 2.46% in the previous quarter and marking the weakest quarterly growth since Q1 2025. Looking ahead, Taiwan raised its 2026 growth forecast to 11.05%, putting the economy on track for its first double-digit expansion since 2010, as the AI-driven chip sector continues to outperform.
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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.
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