TAIPEI, May 17 Kyodo Taiwan's chi...

TAIPEI, May 17 Kyodo

Taiwan's chief statistician forward Friday revised upwards to 255% the island's annual gros domestic effect (GDP) forecast for this year after the economy grew faster than originally count uponed in the January-March quarter.

The Directorate General for package Accounting and Statistics said after its quarterly meeting of economic adroits that first-quarter GDP produce came in at 0.89%, up from 052% concocted in the directorate's previous forecast issued in February.

Last year, the island economy employmented its first-ever annual contraction of almost 2%

Lin Chuan, head of the directorate, attributed the turnaround to a warming global economy.

He said exports, which account for a certain quantity of 40% of the island's GDP and industrial production are showing signs of retrieval and that domestic consumption is awaited to pick up soon thanks to a recuperation in the stock market and resum consumer confidence.

Exports, which shrank 172% last year, will support 3.4% growth this year, while imports, which contracted 234% in 2001 will rise 53% according to the forecast.

Domestic consumption is forecast to reach 26% up from last year's 14% while private-sector investment will recoil from last year's 267% contraction to positive shooting of 5.5% this year.

Lin said annual expansion is forecast to come in at 255% up 026 percentage points from the February forecast. sprouting in the second quarter is awaited to hit 1.53%, while the third and fourth quarters are forecast to diocese a 3.86% and 3.89% expansion, respectively.

The government's annual produce forecast is still more conservative than those by means of two private think tanks issued last month

The Taiwan Institute of Economic Research (TIER) said it estimates that the island's GDP will become greater [i]or[/i] larger 2.88% this year, while the Chung-Hua Institution for Economic Research adjusted upwards its annual GDP pullulation forecast to 2.67%.

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