Taiwan: Financial progress stays buoyant within the third quarter of 2025
GDP studying: Taiwan’s GDP expanded 7.6% in annual phrases in Q3, following 8.0% progress within the prior quarter. The Q3 studying was nicely above market expectations and Taiwan’s personal historic charges of progress. The financial system continued to be buttressed by surging international demand for AI purposes, which in flip aided gross sales of electronics exports. In distinction, home demand was muted, with authorities spending, non-public spending and stuck funding both flat or recording solely minimal expansions.
In seasonally adjusted quarter-on-quarter phrases, the financial system elevated 1.3% in Q3, following 3.0% progress within the earlier quarter.
Exports within the driving seat: In contrast with the prior interval’s information, figures in Q3 softened for presidency consumption (+0.1% in annual phrases vs +2.9% in Q2), exports of products and providers (+30.6% vs +35.0% in Q2) and imports of products and providers (+25.3% vs +31.3% in Q2). In distinction, the studying for personal consumption improved in Q3 (+0.9% vs +0.5% in Q2). Funding was flat 12 months on 12 months in Q3, after 4.9% progress in Q2.
Panelist perception: Nomura analysts stated:
“Strikingly, internet exports contributed 7.2pp to headline GDP progress (i.e. explains 94% of GDP progress), pushed by tech-related shipments due to the AI increase, whereas home demand merely contributed 0.4pp.
This highlights the intensifying divergence between the tech-driven export sector and the home financial system, as present US tariffs adversely have an effect on conventional manufacturing industries and powerful tech-led export progress has restricted spillovers to home demand.”
