Thanks to the expanding demand for artificial intelligence (AI), Taiwan’s semiconductor exports have been robust, leading to an upward revision of the country’s estimated economic growth rate for the third quarter of this year to 7.64%.
Taiwan’s Q3 Growth Rate Estimated at 7.64%, Surpassing South Korea and Singapore
View of the TSMC factory located in Kaohsiung, Taiwan. Photo by Reuters Yonhap News
According to Taiwanese media outlets such as China Times on November 3, Taiwan’s Directorate General of Budget, Accounting and Statistics announced on October 31 that the country’s gross domestic product (GDP) for the third quarter increased by 3.43% year-on-year. This is estimated to be 7.64%, which is 4.73 percentage points higher than the 2.91% forecast in August.
The Directorate General explained that although an economic slowdown was expected in the second half of the year, strong exports led by semiconductors have allowed the economy to maintain its expansion. It added that Taiwan’s third-quarter growth rate of 7.64% was the highest among major Asian economies, surpassing South Korea (1.70%), Hong Kong (3.80%), and Singapore (2.90%).
An official noted that the U.S. policy of raising reciprocal tariffs was initially expected to negatively impact Taiwan’s exports. However, as the tariff shock eased, exports in the third quarter surged by 36.5% year-on-year to 169.4 billion dollars (approximately 242.4 trillion won), driving the growth rate up to 7.64%. He emphasized that this is the highest level in 17 years since the third quarter of 2008.
However, the Directorate General pointed out that while the semiconductor and information and communications technology sectors are driving growth, the traditional industrial sector remains sluggish. It stressed the need to monitor whether the economic recovery will continue.
Previously, Taiwan’s national policy research institute, the Chung-Hua Institution for Economic Research (CIER), also revised its forecast for Taiwan’s real GDP growth rate this year last month, raising it by 2.4 percentage points from 3.05% in July to 5.45%.
by Kim Minyoung
Pubilshed 03 Nov.2025 14:15(KST)