Taiwan M2 Money Supply Growth Eases

Taiwan’s M2 money supply increased 7.42% year-on-year to TWD 70,225 billion in July 2026, slowing from an 8.13% rise in the previous month. The deceleration was mainly driven by net outflows of foreign capital. On a monthly basis, M2 edged down 0.09%, while average M2 growth in the first seven months of the year stood at 6.60%. Meanwhile, lending and investment by all monetary institutions grew 9.07% year-on-year, accelerating from 8.80% in June, driven mainly by stronger growth in claims on public enterprises and government debt. Including lending and investment by life insurers and adjusting for bad-debt write-offs transferred by monetary institutions, the broader measure rose 7.40% year-on-year, up from 7.33% in the previous month.

Taiwan’s broad M2 money supply increased 8.13% year-on-year to a fresh record of TWD 70,290 billion in June 2026, accelerating from a 7.83% rise in the previous month. The increase was mainly driven by faster growth in foreign currency deposits. On a monthly basis, M2 rose 0.45%, while average M2 growth for the first half of the year stood at 6.46%. Meanwhile, lending and investment by all monetary institutions increased 8.80% year-on-year, easing from 9.37% rise in May, amid slower growth in claims on both the private sector and the government. When lending and investment by life insurance companies are included, along with collections and write-offs of bad debts transferred by all monetary institutions, growth stood at 7.32%, down from 7.80% in May.

Taiwan’s broad money supply (M2) rose 7.83% year-on-year to a new record high of TWD 69,973 billion in May 2026, following a 6.45% increase in April. This was driven mainly by stronger growth in lending and investment activity. On a monthly basis, M2 increased 1.12%, bringing the January–May average growth rate to 6.12%. The pickup in money supply reflected firmer credit expansion across the financial system, particularly in claims on the private sector. Meanwhile, lending and investment by all monetary institutions rose 9.36%, up from 8.61% in the previous month, while adjusted lending and investment across all financial institutions increased 7.68%, compared with 7.07% previously, indicating sustained underlying credit momentum.