Taiwan’s economy grew by 13.72% in the first half of 2026, marking the highest growth rate for that period in the past 50 years, according to a report released by the Directorate-General of Budget, Accounting and Statistics (DGBAS) on Friday.
The growth was fueled by the artificial intelligence (AI) boom, significant investments, and increased consumer spending, DGBAS specialist Chiang Hsin-yi told reporters. The agency also projected a gross domestic product (GDP) growth of 12.92% in the second quarter compared to the same period last year, representing the fastest growth rate for April to June in the past 39 years.
Growth drivers and exceeding forecasts
The GDP growth figure for the second quarter was 2.09 percentage points higher than the forecast released by DGBAS in May. The agency attributed this to stronger-than-expected private investments and consumer spending.
Chiang Hsin-yi noted that exports, imports, private consumption, and capital formation all exceeded forecasts in the second quarter, indicating that domestic demand has become a significant driver of growth alongside external demand.
Private consumption rose by approximately 5.88% in the second quarter, the fastest pace in the last 11 quarters. According to Chiang, this growth was supported by record gains in the stock market, a rebound in car sales, and strong demand for travel.
She added that the increase in stock market asset values created an “wealth effect” that stimulated spending on financial services, contributing to the overall rise in consumption. Meanwhile, exports continued to benefit from robust global demand for AI-related electronics and information and communication technology products. In dollar terms, merchandise exports rose by 43.73% year-on-year in the second quarter.
Source: Focus Taiwan
