FX.co ★ Taiwan Q2 GDP Grows 7.96% Fastest in Four Years

Taiwan's economy accelerated markedly in the second quarter of 2025, expanding by 7.96%, up from a 5.48% increase in the first quarter, according to preliminary estimates. This represents the most rapid growth pace in four years, significantly surpassing market predictions of 5.7%. The impressive performance was largely attributed to robust export activity and capital investment. Gross capital formation increased by 5.56%, a slight deceleration from the previous quarter's 15.98% growth, supported by investments in machinery, construction, transportation equipment, and intellectual property. Meanwhile, real private final consumption saw a modest rise of 0.56% compared to 1.36% in Q1, buoyed by spending on food, beverages, and services such as entertainment and transportation. Government spending also saw an uptick, rising by 2.85% from 0.44%, adding 0.37 percentage points to the total GDP growth. Exports of goods and services jumped 35.10%, up from 20.29%, driven by robust global demand for artificial intelligence and other emerging technologies, while imports increased by 31.95%, compared to 24.43% previously. On a seasonally adjusted annualized basis, GDP growth climbed sharply to 12.89% in Q2, up from 7.25% in the preceding quarter.