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Taiwan Private consumption

Taiwan Private consumption

Private Consumption in Taiwan

The Taiwanese economy recorded an average growth rate of 2.6% in private consumption in the decade to 2024, below the 6.4% average for East & South Asia. In 2024, the growth of private consumption was2.7%. For more information on private consumption, visit our dedicated page.

Taiwan Private consumption Chart

Note: This chart displays Private Consumption (annual variation in %) for Taiwan from 2024 to 2014.
Source: Macrobond.

Taiwan Private consumption Data

2020 2021 2022 2023 2024
Private Consumption (ann. var. %) -2.4 -0.1 4.0 7.9 2.7

GDP growth records fastest expansion since Q2 2021 in the second quarter

GDP reading: GDP growth picked up to 8.0% year on year in the second quarter from 5.5% in the first quarter. Q2’s reading marked the strongest growth since Q2 2021 and was well above market expectations. On a seasonally-adjusted quarter-on-quarter basis, economic growth sped up to 3.1% in Q2, up from the previous quarter's 1.8% expansion and marking the best result since Q4 2023. In the second quarter, booming IT exports drove the economy, outweighing sluggish private and government spending.

Exports in the driving seat: Private consumption growth fell to 0.6% year on year in Q2, marking the weakest expansion since Q3 2021 (Q1: +1.4% yoy). Public consumption accelerated to a 2.8% expansion in Q2 (Q1: +0.4% yoy). Total investment rose 5.6% (Q1: +16.0% yoy). On the external front, exports of goods and services growth accelerated to 35.1% year on year in the second quarter, which marked the best reading since Q1 2010 (Q1: +20.3% yoy). In addition, imports of goods and services growth sped up to 32.0% in Q2 (Q1: +24.4% yoy).

Slowdown on the cards: As frontloading runs its course, a slowdown in exports should cause overall GDP growth to ease in Q2, though buoyant global AI demand will continue to gird the export sector.

Panelist insight: On the reading, ING’s Lynn Song said: “Taiwan's economy has fared far better than many market participants had expected at the start of the year. The heavy demand driven by the AI boom, combined with the fear of incoming tariffs, led to blistering export growth year to date. A 51.3% YoY growth of exports to the US in the first half of the year, punctuated by a whopping 90.9% YoY growth in June, proved to be a major driver of overall export growth. While Taiwan's export growth to other regions has been impressive as well, much of the growth can be attributed to the surge in US demand this year.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Taiwanese private consumption projections for the next ten years from a panel of 14 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable private consumption forecast available for Taiwanese private consumption.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Taiwanese private consumption projections.

Want to get access to the full dataset of Taiwanese private consumption forecasts? Send an email to info@focus-economics.com.

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