Taiwan’s GDP grew 14.36 percent year on year in the third quarter, the statistics office reported on a Friday. The figure beat analyst expectations, which averaged 12 percent in a Bloomberg survey.
Bloomberg described that streak as the first in nearly 39 years.
Demand drives the expansion
Global demand for artificial intelligence was the main engine of the expansion. Exports and private investment were both strong, and the data show domestic demand contributing more than 9 percentage points to quarterly growth.
Net exports added close to 5 percentage points. Gross capital formation rose more than 26 percent, a five-year high, while household consumption grew above 5 percent.
Exports and TSMC set the pace
Taiwan’s exports rose about 61 percent in September, reaching a record above 87 billion US dollars. TSMC’s profit grew 69 percent from July to September.
The government has proposed a record budget for 2027 of 3,930 billion Taiwan dollars, or 120 billion US dollars. The plan would take total military spending above 3 percent of GDP.
Rate outlook shifts
The central bank has held its policy rate unchanged for 10 consecutive quarters. Goldman Sachs analysts now expect a new rate-hike cycle to begin in December 2026, rather than a continued hold.
Related: US GDP grows 3.4% in third quarter, beating forecasts · Hungary's third-quarter GDP grows 1.5% year on year
Source: statistics office
