FX.co ★ Taiwan Q4 GDP Growth Strongest Since 1987

In the fourth quarter of 2025, Taiwan's economy experienced a robust expansion, recording a year-on-year growth of 12.68%. This performance far surpassed market predictions of 8.5% and marked a significant acceleration from the previous quarter's 8.21% growth. It represents the most rapid growth rate since the third quarter of 1987. The surge was predominantly driven by a higher-than-expected increase in external demand, bolstered by advancements in emerging technologies like artificial intelligence (AI).

Exports of goods and services saw a substantial increase of 38.82%, up from the 31.95% growth observed in the third quarter, while imports decreased slightly to 24.6% from 26.09%. Additionally, household consumption rose by 3.43%, significantly higher than the previous 1.19% increase, spurred by greater spending in sectors such as information and communications, entertainment, transportation, outbound tourism, as well as heightened securities transaction fees in a thriving stock market.

Conversely, gross capital formation fell by 3.83%, in contrast to a minor rise of 0.16% previously. On a seasonally adjusted quarterly basis, the GDP grew by 5.52%, accelerating from a revised 1.71% increase in the previous quarter. Preliminary estimates for 2025 suggest that Taiwan's economy expanded by 8.63% overall.