The latest advance estimates surpassed the 12% growth projected by economists, fueled by a 21% jump in exports of goods and services. Heavyweights like Taiwan Semiconductor Manufacturing Co. continue to anchor the output, with gross capital formation accelerating by 26% as domestic firms ramp up capacity to meet international orders. This export success is now bleeding into the local economy, evidenced by a 5.4% rise in private consumption and stronger household spending.

Despite the current momentum, the concentration of the island's economic health in the semiconductor sector presents a structural risk. With exports accounting for 85% of GDP, any cooling in global AI infrastructure spending could hit the island disproportionately. Capital Economics projects a sharp deceleration to 1% growth by 2028, citing the potential for a U.S. market correction. For now, the immediate pressure on the central bank is shifting; rising wages and robust corporate lending have fueled market speculation that an interest rate hike could arrive as early as December.