Taipei:Taiwan's economy experienced significant growth in the third quarter, with a 14.36% increase compared to the previous year, marking the highest growth for the same quarter in 48 years, the Directorate General of Budget, Accounting and Statistics (DGBAS) announced.

According to Focus Taiwan, the third-quarter forecast exceeded an earlier August estimate by 2.94 percentage points. This period also marked the fourth consecutive quarter of double-digit growth. DGBAS specialist Chiang Hsin-yi attributed the robust growth to stronger-than-expected exports and business investment.

Key factors driving the growth included high demand for artificial intelligence applications, high-performance computing, and cloud services, along with increased electronic component orders for new consumer products. Additionally, higher prices for exported products boosted export value, while strong export demand supported business investment.

Real investment and inventory changes saw a 26.36% increase in the third quarter, surpassing previous forecasts by 4.26 percentage points. Capital equipment imports, measured in Taiwan dollars, rose by 58.5%, with a notable 35.66% increase in semiconductor equipment. Investment in machinery, transportation equipment, intellectual property, and construction also saw growth.

Beyond electronics and ICT, other industries also experienced double-digit export growth, signaling a recovery in traditional industries. On the domestic side, private consumption remained robust, aided by a recovery in the auto market and the wealth effect from record-high Taiwan stock prices.

Real private consumption increased by 5.37% in the third quarter, slightly above the August forecast, marking the second consecutive quarter of over 5% growth. The last extended period of double-digit growth occurred in 1986-87, during a phase of economic liberalization.

For the first three quarters, Taiwan's growth is estimated at 14.22%, the highest for this period in 50 years, as reported by the DGBAS.