Taiwan's economy experienced impressive growth, expanding by 5.37% in the first quarter of 2025. This figure greatly exceeded market forecasts of 3.3% and marked an increase from 2.9% in the preceding quarter, as indicated by preliminary estimates. This robust economic performance was primarily fueled by strong domestic demand and favorable net external demand dynamics.
Private consumption saw a rise of 1.22%, down from 2.49% in the fourth quarter of 2024, largely due to increased spending on services such as dining, entertainment, and overseas travel. Gross capital formation grew by 14.72%, compared to 19.20% previously, driven by substantial investment in machinery, construction, and intellectual property products. Public expenditure saw a modest rise of 0.53%, compared to 2.14% previously.
Meanwhile, exports of goods and services soared by 20.11%, up from 8.9%, reflecting heightened demand for electronics and communication products. Imports also surged notably, registering a growth of 23.66%, up from 18.31%. On a seasonally adjusted annualized basis, GDP growth accelerated to 9.67% in the first quarter of 2025, an increase from 6.64% in the prior quarter.
