Taiwan's third-quarter preliminary GDP beats forecasts on robust AI demand
SPY•Taiwan's GDP grew 14.36% year on year in the third quarter of 2026, above the 12% forecast and the previous quarter's 12.93% growth. The statistics agency had raised its 2026 growth forecast to 11.05% in August.
1. Growth beats expectations
Taiwan's economy grew 14.36% year on year in the July-to-September quarter, the Directorate General of Budget, Accounting and Statistics said. The result exceeded economists' 12% forecast and the 12.93% growth recorded in the second quarter. The agency said opportunities in AI, high-performance computing and cloud services continued to grow.
2. AI demand and rates
Taiwan's exports rose 44.6% year on year to $244.92 billion in the third quarter. Analyst Kevin Wang said long-term demand for AI-related hardware remained promising, and that Taiwan's supply chain would be a major beneficiary. He said the central bank may need to raise rates if other central banks do so or price pressures intensify; the statistics agency will release revised GDP figures and updated forecasts on November 27.
