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Taiwan’s economy grew by 7.64% year-on-year in the third quarter of 2025, surpassing market expectations of 6% growth but easing from the four-year high of an 8.01% expansion in the previous quarter, advance estimate showed. Still, this marked the tenth consecutive period of economic expansion, significantly supported by the global surge in AI development. Taiwan’s dominance in advanced semiconductor and server production has positioned it as a key beneficiary of AI-related demand, reflected in record export figures in August. Domestic demand slowed to 0.49% from 2.23% in Q2, as the government spending (0.08% vs 2.85%) slowed despite stronger household consumption (0.92% vs 0.49%). On net external demand, exports of goods and services soared 30.64% in Q3, outpacing a 25.27% increase in imports. On a seasonally adjusted quarterly basis, GDP expanded 1.31%, moderating from the 3.05% growth recorded in the second quarter.