Taiwan economy grows at fastest pace in 39 years on AI-driven tech exports

Taiwan’s economy expanded at its fastest pace in nearly four decades in the first quarter of 2026, supported by strong global demand for technology products used in artificial intelligence infrastructure, official data showed Thursday.

Gross domestic product (GDP) rose 13.7% year-on-year in the January-March period, accelerating from 12.7% growth in the previous quarter, according to Taiwan’s statistics bureau.

The figure marked the strongest annual growth since 1987 and exceeded market expectations for an 11.3% expansion.

The statistics bureau said the stronger-than-expected performance was driven by robust exports, investment, and private consumption, with domestic demand contributing slightly more than 4 percentage points to overall growth.

Taiwan’s export-oriented economy has continued to benefit from the global boom in artificial intelligence and high-performance computing, as the island remains a key supplier of semiconductors and other advanced technology products.

Exports hit a record high in March, surging nearly 62% from a year earlier, underscoring the strength of external demand despite disruptions linked to the war in Iran and elevated global energy prices.

The latest data eased concerns that the Middle East conflict and higher fuel costs would weigh heavily on Taiwan’s economy.

Taiwan’s economy expanded nearly 8.7% in 2025, making it one of the world’s best-performing major economies. Both the central bank and the statistics bureau had projected first-quarter growth of around 11.5%.