Taiwan: Q3 GDP Growth Beats Expectations.

Taiwan’s economy expanded 14.36% year-on-year in the third quarter of 2026, accelerating from 12.93% in the previous quarter and exceeding market expectations of 12%, according to preliminary estimates. Growth was largely underpinned by sustained demand for emerging technologies, particularly artificial intelligence and related applications. Domestic demand growth strengthened to 11.91% from 8.83% in Q2, as government spending nearly doubled to 6.43% from 3.24%, while household consumptions eased to 5.37% from 5.91%. Gross capital formation also surged to 26.36% from 16.2% in the previous quarter, driven mainly by increased investment in machinery and equipment, transportation equipment, intellectual property products and construction. External demand remained robust, although exports (21.12% vs 21.24%) slowed, while imports (20.12% vs 18.25%) rose. On a seasonally adjusted quarterly basis, Taiwan's GDP jumped to 3.21% from 1.39%, marking its highest level since Q4 2025.