TAIPEI, Taiwan: Taiwan’s GDP growth reached 12.92% year on year in the second quarter of 2026, official data showed, as global AI demand lifted exports.
The Directorate-General of Budget, Accounting and Statistics published the advance estimate on July 31. It also reported annualised quarterly growth of 9.91% after seasonal adjustments.
The Taiwan GDP growth rate beat the agency’s May forecast by 2.09 percentage points. That forecast had projected a 10.83% increase, according to the official GDP release.
Earlier, the agency revised first-quarter growth to 14.55%. It also raised Taiwan’s 2025 growth rate to 8.76% from an earlier estimate of 8.68%.
The agency linked the first-quarter surge to strong demand for AI infrastructure. Real exports of goods and services rose 35.76% during that period.
Meanwhile, the US Census Bureau data showed that US imports from Taiwan reached $201.4 billion in 2025. That compares with $116.3 billion in 2024.
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Imports reached another $116.1 billion during the first five months of 2026. Consequently, the US goods deficit with Taiwan widened to $91.4 billion.
The US Trade Representative said a February agreement applied a 15% US tariff rate, subject to existing rules. Taiwan also agreed to eliminate or reduce 99% of its tariff barriers.
However, analysts cited longer-term risks. Atlantic Council fellow Dexter Tiff Roberts pointed to Taiwan’s reliance on advanced chips.
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University of Alberta adviser Reza Hasmath warned that the growing trade imbalance could prompt renewed pressure from Washington.
Both analysts also cited weak traditional industries, an ageing population and Taiwan’s heavy dependence on TSMC as structural risks.
