Taiwan Private consumption

Economic growth accelerates in the first quarter of 2026

GDP reading: Taiwan's GDP grew 13.7% on a year-on-year basis in Q1, following 12.7% growth in the previous quarter and marking a multi-decade high. Exports were the key driver, though domestic demand contributed notably more than in the previous quarter, evidencing a broadening-out of the economic expansion.

Drivers: Compared with the previous quarter's data, readings in Q1 improved for private consumption (+4.9% on a year-on-year basis vs +3.5% in Q4), government consumption (+3.9% vs +0.8% in Q4) gross capital formation (+5.2% vs -3.4% in Q4) and imports of goods and services (+27.1% vs +24.6% in Q4). In contrast, the reading for exports of goods and services softened in Q1 (+35.2% vs +38.8% in Q4). In seasonally adjusted quarter-on-quarter terms, the economy grew 2.8% in Q1, following a 5.4% expansion in the previous quarter.

Panelist insight: United Overseas Bank’s Ho Woei Chen said: “Looking ahead, demand associated with emerging technology applications should continue to support strong manufacturing performance and investment growth, though the high base effect will begin to moderate the headline growth rates. The principal downside risk stems from the Middle East conflicts, which could dampen global demand if shipping disruptions in the Strait of Hormuz are prolonged. On the other hand, we assess risks from US tariff measures as relatively contained, while improved resilience in the Chinese economy should provide an important stabilizing force for the global outlook.”

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