Taiwan's economy grows 13.72% in H1, strongest in 50 years

Taipei, July 31 (CNA) Taiwan's economy expanded 13.72 percent in the first half of 2026, marking its strongest first-half growth in 50 years, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Friday.

The performance was driven by the artificial intelligence (AI) boom, robust investment and stronger consumer spending, DGBAS specialist Chiang Hsin-yi (江心怡) told reporters.

DGBAS also estimated that second-quarter gross domestic product (GDP) grew 12.92 percent from a year earlier, the fastest pace for the April-June period in 39 years.

The figure was 2.09 percentage points above the DGBAS forecast issued in May, mainly because private investment and consumer spending exceeded expectations, the agency explained.

Chiang said exports, imports, private consumption and capital formation all performed better than expected in the second quarter, indicating that domestic demand had become an important growth driver alongside external demand.

Private consumption rose an estimated 5.88 percent in the second quarter, the fastest pace in 11 quarters, supported by record stock market gains, a recovery in auto sales and strong travel demand, Chiang said.

She added that surging stock market turnover created a wealth effect and boosted spending on financial services, helping lift overall consumer spending.

Meanwhile, exports continued to benefit from strong global demand for AI-related electronics and information and communications technology products, Chiang said, adding that merchandise exports in U.S. dollar terms rose 43.73 percent year-on-year in the second quarter.