Economic growth accelerates in the fourth quarter of 2025

GDP reading: Taiwan's GDP expanded 12.7% in annual terms in Q4, following 8.4% growth in the prior quarter. Q4’s reading was well above market expectations and was the fastest since the 1980s. On a seasonally adjusted quarter-on-quarter basis, GDP increased 5.4% in Q4, following a 1.8% expansion in the prior quarter.

Boom is still narrowly driven: Compared with the previous quarter's data, readings in Q4 improved for private consumption (+3.4% on a year-on-year basis vs +0.7% in Q3), government consumption (+0.9% vs +0.4% in Q3) and exports of goods and services (+38.8% vs +30.6% in Q3). In contrast, the reading for imports of goods and services worsened in Q4 (+24.6% vs +24.2% in Q3), as did the figure for gross investment (-3.4% vs +1.4% in Q3). As such, Taiwan’s economic surge remained on narrow footing, with soaring electronics exports the key driver. That said, accelerations in private and public spending suggest a slight broadening-out of growth, with private consumption rising at the fastest pace since Q2 2024.

Panelist insight: United Overseas Bank’s Ho Woei Chen said: “The sustained strength in export demand suggests that Taiwan’s economy could continue to outperform this year. Latest data showed Taiwan’s export orders rising by 43.8% y/y in Dec – fastest pace in nearly five years despite the increasingly high base. This was driven by strong global demand for Taiwan’s information & communication products and electronics exports, which accounted for almost 3/4 of its export orders. Taiwan’s trade deal with the US in Jan which lowers reciprocal tariffs on Taiwan goods to 15% from 20% in return for Taiwanese investments in the US, has helped ease policy uncertainty and placed Taiwan on a level competitive footing with Japan, South Korea, and the European Union.”

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