Taiwan's economy expanded 14.36% year-on-year in the third quarter of 2026, according to preliminary national income statistics released by the Directorate-General of Budget, Accounting and Statistics on Friday, Oct. 30. The result was 2.94 percentage points above the government's August forecast, accelerated from 12.93% in the previous quarter and exceeded the 12% market expectation. The reading extended Taiwan's double-digit growth streak to four quarters, the longest in nearly 39 years, as artificial-intelligence demand supported domestic activity. Domestic demand growth strengthened to 11.91% from 8.83%, with government spending growth nearly doubling to 6.43%, while household consumption eased to 5.37% from 5.91%. Gross capital formation surged to 26.36% from 16.2%, driven by investment in machinery and equipment, transportation equipment, intellectual property products and construction. External demand remained strong: September exports rose almost 61% to a record above US$87 billion, while quarterly export growth edged down to 21.12% from 21.24% and import growth increased to 20.12% from 18.25%. Taiwan Semiconductor Manufacturing delivered a better-than-expected fourth-quarter revenue outlook after reporting a 69% profit jump for July to September, although concerns remain over the sustainability of the AI investment boom. Seasonally adjusted quarterly GDP growth accelerated to 3.21% from 1.39%, its highest level since the fourth quarter of 2025. The result exceeded all but one forecast in a Bloomberg survey. The expansion also strengthened public finances, with the cabinet proposing a record NT$3.93 trillion spending plan for 2027, including overall military spending exceeding 3% of GDP.