Taipei: Taiwan’s economy is poised to record a 7.64 percent growth in the third quarter, marking a significant 4.73 percentage point increase from the August forecast. The Directorate General of Budget, Accounting and Statistics (DGBAS) announced that the annual growth could reach 5 percent this year.
According to Focus Taiwan, a significant factor contributing to the stronger-than-expected growth was better-than-anticipated exports. Chiang Hsin-yi, a specialist with the DGBAS, reported that goods exports in the third quarter, measured in U.S. dollars, exceeded the August forecast by US$9.16 billion, totaling US$169.4 billion. This represents a 36.5 percent increase compared to the same period last year.
Triangular trade, which measures the combined impact of goods and services exports on economic growth, also showed robust performance. It registered real growth of 30.64 percent, surpassing the forecast by 6.44 percentage points, according to Chiang.
Chiang explained that the initial August forecast was conservative, considering U.S. President Donald Trump’s pledge to impose 100 percent tariffs on chip and semiconductor imports. Given that information and communications technology (ICT) products make up 70 percent of Taiwan’s exports, the strong performance in ICT industries, driven by high demand for artificial intelligence, defied expectations.
However, traditional industries and non-AI-related manufacturing sectors underperformed, indicating uneven industrial development that requires attention. In terms of private consumption, spending on ICT products, leisure, and entertainment increased. Conversely, demand for cars and motorcycles fell, registering negative growth, while retail and restaurant revenues were weak. This resulted in an estimated 0.92 percent growth in real terms for private consumption in the third quarter.
The DGBAS remains optimistic about Taiwan’s economic prospects, anticipating that the country’s economic growth for the year will be revised upward to at least 5 percent, Chiang stated.