Taiwan Q4 GDP Growth Strongest Since 1987

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The Taiwanese economy expanded 12.68% year-on-year in Q4 2025, far exceeding market expectations of 8.5% and accelerating sharply from 8.21% in the previous quarter. It marked the strongest pace of growth since Q3 1987, driven primarily by stronger-than-anticipated external demand, fueled by emerging technologies such as artificial intelligence (AI). Exports of goods and services soared 38.82% from 31.95% in Q3, while imports eased to 24.6% from 26.09%. Moreover, household consumption rose 3.43% from 1.19%, supported by increased spending on information and communications, entertainment, transportation, outbound tourism, and higher securities transaction fees amid a booming stock market. In contrast, gross capital formation declined 3.83%, reversing a 0.16% increase. On a seasonally adjusted quarterly basis, GDP expanded 5.52%, accelerating from a revised 1.71% rise in the previous quarter. For 2025, preliminary estimates indicate that Taiwan’s economy grew 8.63%.

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