Taiwan Q3 GDP Surges 7.64% Led by AI Tech, Sets Higher 2025 Growth Target

Taiwan's economy grew by 7.64% year-over-year in the third quarter of 2025, surpassing analyst forecasts of 6.0% but slowing from the 8.01% growth seen in the previous quarter. This stronger-than-expected performance was largely driven by a surge in exports related to artificial intelligence (AI) and new technology products, particularly in the semiconductor and high-tech sectors, which offset weaker demand in traditional industries. Goods exports increased by 36.5% in U.S. dollar terms, and exports of goods and services rose by 30.64%, significantly exceeding earlier conservative estimates influenced by tariff concerns. Private consumption showed modest growth, largely fueled by ICT products and leisure spending, while sectors like automotive and retail remained weak. As a result of this robust quarter, Taiwan's economic growth forecast for the entire year has been revised upward to over 5%, reflecting optimism in the country's tech-driven export strength despite some uneven industrial performance. Analysts expect the central bank to maintain stable interest rates due to mild inflation and better-than-expected economic growth.