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Taiwan's Economy Expands About 14% in Q1 on AI Demand

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-- Taiwan's economy expanded sharply in the first quarter, with real GDP jumping 13.7% year-on-year, according to advance estimates from the Directorate General of Budget, Accounting and Statistics (DGBAS) released on Thursday.

On a seasonally adjusted annualized basis, the economy expanded 11.86%.

Growth was driven largely by strong external demand linked to artificial intelligence and related infrastructure, with exports of goods and services jumping 35.25% year-on-year. Imports also climbed 27.07%, reflecting robust trade activity.

Private consumption increased 4.89%, supported by spending on communications, transport, entertainment, and outbound travel, alongside higher financial market activity. Meanwhile, gross capital formation rose 5.20%, led by investment in machinery, intellectual property and transport equipment, the department said.

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