Taiwan Q3 GDP Growth Exceeds Expectations

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Taiwan’s economy grew by 7.64% year-on-year in the third quarter of 2025, surpassing market expectations of 6% growth but easing from the four-year high of an 8.01% expansion in the previous quarter, according to an advance estimate. Domestic demand growth slowed significantly to 0.49% from 2.23% in the second quarter, driven mainly by a sharp deceleration in government spending (0.08% vs 2.85%), while household consumption accelerated (0.92% vs 0.49%). In addition, gross capital formation declined (-0.04% vs 4.87%). On the external front, exports of goods and services surged 30.64%, outpacing the 25.27% rise in imports. On a seasonally adjusted quarterly basis, GDP expanded 1.31%, moderating from the 3.05% growth recorded in the second quarter.

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