Taiwan Economy Grows 13.72 Percent in First Half of 2026

The Directorate-General of Budget, Accounting and Statistics reported that Taiwan's economy expanded by 13.72 percent in the first half of 2026, the strongest performance for a first-half period in 50 years. Second-quarter gross domestic product grew 12.92 percent year-on-year, marking the fastest growth for the April-June period in 39 years and the fastest overall quarterly growth since 1988.

This expansion exceeded the government forecast of 10.8 percent and analyst estimates of 10.5 percent. The growth was primarily propelled by an artificial intelligence boom, which drove a 43.73 percent year-on-year increase in merchandise exports. Specifically, semiconductor and information-technology product exports rose by more than 40 percent.

Domestic demand also played a critical role, expanding by 8.47 percent. This was fueled by business investment in capacity expansion and a 5.88 percent rise in private consumption—the fastest pace in 11 quarters—supported by record stock market gains and a recovery in travel and auto sales. The government indicated that full-year economic growth could exceed 10 percent if current momentum persists.