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. The reading marked the slowest annual expansion since the third quarter of 2025, as the loss of momentum in external demand weighed on the overall economy. Exports of goods and services slowed sharply to 21.24% from 35.41% in the first quarter, while imports also decelerated to 18.25% from 25.41%. In contrast, domestic demand strengthened, growing to 8.83% from 5.73%, driven 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 grew 1.39%, slowing from 2.46% in the previous three months and marking the weakest quarterly expansion since the first quarter of 2025.