Taiwan economy at a glance

Latest figures for Taiwan: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Taiwan on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	2.7%	September 2026	2.0% August 2026
Core inflation (excluding food and energy)	2.5%	September 2026	2.3% August 2026
Real GDP growth (year on year)	14.4%	Q3 2026	12.9% Q2 2026
Policy rate (Central Bank of the Republic of China)	2.00%	November 2026	2.00% October 2026
Unemployment rate	3.3%	September 2026	3.3% August 2026
Manufacturing PMI (S&P Global Taiwan Manufacturing PMI)	54.9	October 2026	56.7 September 2026
Retail sales (year on year)	8.5%	September 2026	6.5% August 2026
Industrial production (year on year)	19.2%	September 2026	23.5% August 2026
Stock market (TAIEX)	39,702	November 2026	+43.7% over 12 months

Questions and answers

What is the inflation rate in Taiwan?

Taiwan's annual inflation rate was 2.7% in September 2026, up from 2.0% in August 2026.

What is the interest rate in Taiwan?

The Central Bank of the Republic of China Taiwan) (discount rate is 2.00% (as of November 2026).

How fast is Taiwan's economy growing?

Taiwan's real GDP grew 14.4% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 10.7% in 2026 and 4.3% in 2027.

What is the unemployment rate in Taiwan?

Taiwan's unemployment rate was 3.3% in September 2026, unchanged from August 2026.

How much government debt does Taiwan have?

Taiwan's government debt is about 27.1% of GDP (latest annual figure), with a budget surplus of 0.3% of GDP.

What is Taiwan's credit rating?

Taiwan's sovereign credit ratings: S&P AA+, Moody's Aa3, Fitch AA.

What is the VAT rate in Taiwan?

Taiwan's standard VAT rate is 5% (2026 rules).

What is the corporate tax rate in Taiwan?

Taiwan's corporate income tax rate is 20.0% (2026 rules).

Who leads Taiwan?

Taiwan is led by President Lai Ching-te (head of state; Democratic Progressive Party), in office since May 2024. The premier heads the Executive Yuan. Next election: Nationwide '9-in-1' local elections on 28 Nov 2026; presidential and legislative elections due January 2028.

Outlook

Official forecasters have repeatedly raised their numbers. The central bank sees 2026 growth of about 11.5%, DGBAS 11.05% (August) and the IMF's October WEO 10.7%, slowing to about 4–6% in 2027 as base effects bite. Inflation is running above the 2% alert level on oil and food, and DGBAS and the CBC expect it to fade toward 1.8–1.9% in 2027, so a rate hike is possible but not the base case. The main downside risks are a correction in AI-related demand or chip valuations, US tariff and semiconductor-policy shifts, and cross-strait tension around the November local elections.

Why Taiwan matters for the world economy

Taiwan is the indispensable node of the AI hardware supply chain. TSMC fabricates the bulk of the world's leading-edge chips, and local firms assemble most AI servers, so Taiwan's record USD 87bn of monthly exports is effectively a gauge of global AI capex. The United States (about 31% of 2025 exports) and China plus Hong Kong (about 27%) are most exposed, along with Japan, Korea and the Netherlands through equipment and memory links. Any cross-strait military or blockade scenario is therefore a global supply shock, not a regional one. A reversal of the AI trade, such as the mid-October chip-stock slide, hits TAIEX, the Taiwan dollar and life-insurer USD portfolios.

Politics

President Lai's DPP government faces an opposition-controlled legislature (KMT plus TPP). The 2026 central budget (about USD 93bn) was only passed in mid-August 2026 after a record delay over opposition cuts. Both camps are now campaigning for the 28 November local elections, an early test before 2028. Cross-strait pressure from Beijing remains the main tail risk, against an AI-export boom that has pushed growth into double digits.

System: Semi-presidential republic.

Economy and taxes

GDP: US$884 billion
Population: 23.3 million
Government debt: 27.1% of GDP
Budget balance: 0.3% of GDP
Current account: 17.4% of GDP
Main exports: ICT products incl. AI servers (USD 39bn in Sept 2026), semiconductors and other electronic components (USD 31bn), electrical machinery, base metals, plastics and chemicals
Top export markets: United States (30.9%), China (26.6%), Japan (4.7%), South Korea (4.1%)
IMF growth forecast: 10.7% in 2026, 4.3% in 2027
IMF inflation forecast: 2.0% in 2026, 1.8% in 2027
Currency: TWD
Freelancer tax: A self-employed person earning the average wage (TWD 806,448 a year) pays about 8.8% of it in income tax and social contributions (2026 rules)
Top income tax rate: 40.0%
Gold reserves: 423.9 tonnes (August 2026)
Energy self-sufficiency: 6% (2024)

Recent news

4 November 2026 Legislators release some frozen defence funds, but submarine money stays blocked Focus Taiwan (CNA)
A legislative committee unfroze funding for 74 of 201 frozen items in the 2026 defence budget, including Stinger missiles and drone defences. NT$12.9bn for seven more submarines stays frozen until the prototype passes sea trials, and several US arms deals still lack contracts.
3 November 2026 Taiwan stocks suffer one of their steepest one-day point falls on AI fears Focus Taiwan (CNA)
The Taiex fell 1,612.60 points, or 3.59%, to 43,307.54, its seventh-steepest single-day point drop on record, after a US chip-stock selloff over heavy AI spending. Foreign investors sold a net NT$107bn of shares, and MediaTek and ASE fell more than 7%.
2 November 2026 Taiwan's factory PMI eases from a five-year high but stays strong Trading Economics
The S&P Global manufacturing PMI fell to 54.9 in October from 56.7, an eleventh straight month of expansion, with new orders, output and jobs all still growing. Delivery times lengthened sharply and selling prices stayed high.
30 October 2026 Taiwan's economy grows 14.36% in the third quarter, the fastest such quarter in 48 years Focus Taiwan (CNA)
GDP rose an estimated 14.36% from a year earlier, the fourth straight quarter of double-digit growth and 2.94 points above the August forecast, on AI and cloud-computing exports and a 26% rise in investment. Growth for the first three quarters reached 14.22%.
23 October 2026 Taiwan's factory output jumps 19% as unemployment stays near record lows Focus Taiwan (CNA)
Industrial production rose 19.17% y/y in September, led by AI-related electronics, and the ministry expects manufacturing output to grow 20.5-24.2% in October. The jobless rate was 3.36%, the lowest for a September in 26 years.
20 October 2026 Taiwan's export orders hit a record USD 114bn on AI demand Trading Economics
Orders rose 62.4% y/y in September and topped USD 100bn for a second month, with orders from the US up 79%. Growth slowed from 71.4% in August as most product groups cooled slightly, but orders point to strong exports in the months ahead.

Headlines and summaries are compiled daily from the linked reports with AI assistance.