Taiwan's economy grew far faster than expected in the third quarter of 2026, expanding 14.36 per cent from a year earlier as relentless global demand for artificial-intelligence chips and technology kept its factories running at full stretch, the Directorate General of Budget, Accounting and Statistics (DGBAS) said in its advance estimate on Friday.
The figure accelerated from 12.93 per cent growth in the second quarter and beat both the market consensus of about 12 per cent and ING's forecast of 11.4 per cent. Taiwan's CNA news agency reported it was the highest third-quarter growth rate in 48 years, and Bloomberg noted it was Taiwan's fourth straight quarter of double-digit growth — the longest such streak since 1987.
Exports were the engine: merchandise exports measured in US dollars rose 44.63 per cent from a year earlier, worth $244.92 billion in the quarter, on demand linked to artificial intelligence, high-performance computing and cloud services. But this time the bigger push came from home — domestic demand grew 11.91 per cent, and gross capital formation surged 26.36 per cent as Taiwanese technology companies aggressively expanded capacity, investing in machinery, transport equipment, intellectual property and construction.
Source: ING Think — Taiwan's GDP beats forecasts yet again in the third quarter, 30 October 2026
ING said domestic demand contributed 9.41 percentage points of the growth, more than net exports' 4.94 points, and raised its full-year forecasts again — to 13.1 per cent for 2026 and 9.5 per cent for 2027. ANZ also lifted its 2026 forecast for Taiwan to 13.0 per cent after the upside surprise. On a seasonally adjusted basis, GDP rose 3.21 per cent from the previous quarter.
The numbers underline how central Taiwan — home to the world's most advanced semiconductor manufacturing — has become to the global AI build-out, and why any disruption around the island, from Chinese military pressure to trade tariffs, is watched so closely in Washington, Beijing and world markets. More detailed and revised figures, with updated official forecasts, will follow in the coming weeks.