Taiwan’s economy expanded by 12.92% year-on-year in the second quarter of 2026, slowing from the exceptionally strong 14.55% growth recorded in the first quarter of 2026. The latest gross domestic product (GDP) figures, updated on 31 July 2026, still point to robust economic momentum, albeit at a more moderate pace.
Both the current and previous readings are based on year-over-year comparisons, measuring the change in quarterly output against the same quarter a year earlier. The first-quarter figure of 14.55% reflected a sharp expansion relative to the first quarter of the previous year, while the latest 12.92% reading shows that growth remains elevated but is no longer accelerating at the earlier rate.
The deceleration from Q1 to Q2 suggests that some of the drivers behind Taiwan’s earlier surge in activity have begun to normalize, even as overall GDP continues to grow at a double-digit pace. Market participants and policymakers will likely watch upcoming releases closely to determine whether this marks the start of a gradual cooling phase or a stabilization at a high growth level.
