Taiwan: Growth stays strong as normalization begins – DBS
DBS Group Research economist Ma Tieying notes Taiwan’s 2Q GDP growth slowed to 12.9% year-on-year from 14.5% in 1Q, but remained solid on a quarterly basis.
DBS Group Research economist Ma Tieying reports that Taiwan's second quarter GDP growth slowed to 12.9% year-on-year, despite remaining solid on a quarter-over-quarter basis. The narrow divergence between exports and domestic demand is a positive sign, with domestic demand contributing more to growth than exports for the first time in five quarters.
The central bank may hike interest rates in the second half of 2026, with CPI inflation expected to stay within a 2-2.5% year-on-year range. Financial market pressures, including a declining TAIEX, foreign net selling of the index, and tighter liquidity conditions, remain. The GBP/USD pair is attracting dip-buyers and climbing toward a three-month high, while the EUR/USD pair gains strength against the US Dollar.
Gold and Cardano show mixed fundamental cues, while the US Dollar faces mixed signals due to disappointing economic data.
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