Growing like ‘gangbusters’: Can Taiwan maintain its economic momentum?

Core Impact Points

• Taiwan's GDP grew 12.92% in the second quarter of 2026, with a 13.69% rise in the first quarter.
• The US imported $201bn worth of goods from Taiwan in 2025, nearly double the rate from 2024.
• Taiwan has become the third-largest source of US imports, after Mexico and Canada, and is expected to maintain its momentum due to its thriving technology sector.
• Experts warn that Taiwan's economy may be unsustainable in the long term due to demographic concerns, such as a rapidly ageing population and a reliance on foreign imports of energy products.
• The US-China trade relationship may also impact Taiwan's economy, with some experts warning that Trump's administration may renegotiate trade deals with Taipei.
• Taiwan's reliance on the AI sector may lead to a K-shaped economy, where the wealthy see growth while the poorer segments of society stagnate or decline.