Taiwan's economy surges 13.7% in H1 2026, fastest in 50 years

Taiwan reported a 13.72% increase in GDP for the first half of 2026, the strongest growth rate in half a century. The official estimate for the second quarter stands at 12.92%, also a 39‑year high, driven by a surge in private investment, consumer spending and a booming stock market.

The surge is attributed to the artificial‑intelligence boom, especially demand for advanced semiconductors produced by Taiwan Semiconductor Manufacturing Company (TSMC). Exports rose sharply, with AI‑related electronic products and chip shipments expanding dramatically. Forecasts for the full‑year 2026 GDP have been revised upward, with the government now expecting growth above 10% and Academia Sinica projecting around 10.16%.

Domestic consumption benefited from a wealth effect as stock‑market turnover increased more than two‑fold, while imports of capital equipment, particularly semiconductor manufacturing gear, grew over 50%. The overall picture points to a shift from export‑led to a more balanced growth model powered by AI‑related demand.