FX.co ★ Taiwan Q2 GDP Growth Loses Momentum

Taiwan’s economy grew 12.92% year-on-year in the second quarter of 2026, exceeding market expectations of 10.8% but slowing from the multi-decade high of 14.55% recorded in the previous quarter, according to preliminary estimates. This was the softest pace of expansion since Q3 2025, reflecting a loss of momentum in external demand. Growth in exports of goods and services eased to 21.64% from 35.76% in Q1, while import growth decelerated to 18.27% from 26.34%.

By contrast, domestic demand firmed. Household consumption strengthened, with growth picking up to 5.88% from 4.74%, and gross capital formation accelerated sharply to 15.14% from 5.92%. Government spending, however, cooled to 3.22% from 4.06%. On a seasonally adjusted quarter-on-quarter basis, Taiwan’s GDP expanded 2.39% in Q2 2026, up from 1.69% in the first quarter.