Politically and economically, Taiwan suffered bitterly in the 1930s and 1940s. Important events during this period included war chaos, retrocession, and the central government's move to Taiwan. To further our understanding of the economic change that occurred in Taiwan during this period, this study calculates Gross Domestic Product (GDP) in Taiwan from 1937 to 1951. Real GDP per capita averaged NT$1,977 in 1937. This fell moderately through 1941 and then decreased to NT$679 during the Pacific War. By 1951, it had recovered to NT$1,493 due to post-war industrial development. Economic growth averaged-0.7% from 1938 to 1941, -18.7% from 1942 to 1945 and 17.6% from the year of retrocession to 1951.