Speaking at a news briefing on the latest domestic economic situation, Shih Su-mei, head of the Directorate General of Budget, Accounting and Statistics (DGBAS), said Taiwan's trade-driven economy will post a 4.39 percent growth for 2010 as exports have gradually regained momentum.

The expected growth rate marks a 0.47 percent rise from the figure forecast in August when the Cabinet-level agency predicted that Taiwan's GDP would grow 3.92 percent next year, Shih said.

"Thanks to thriving trade across the Taiwan Strait, our foreign trade has gradually regained steam, " Shih said, adding that customs statistics have shown a consistent upward spiral in recent months, which will fuel Taiwan's GDP growth at a moderate pace in the coming year.

She also predicted that Taiwan's average per capita gross national product (GNP) will be about US$17,936 next year while the consumer price index (CPI) will spike by an estimated 0.92 percent.

According to the latest DGBAS forecast, Taiwan's economy will contract an estimated 2.53 percent this year from the 2008 level. It will mark the worst decline in history.

Meanwhile, the DGBAS forecast that while Taiwan's exports will post a 20.33 percent year-on-year decline this year, the export volume is expected to increase by an estimated 15.36 percent next year.

On the import front, the agency forecast a 27.74 percent year-on-year contraction for this year, but a positive growth of 18.06 percent for 2010.

While both export and import volumes will grow significantly next year, the agency said, they are not likely to return to the pre-global financial crisis levels.

"Perhaps, though, both figures will return to the levels registered between 2006 and 2007," Shih said.

(By Erin Lin and Sofia Wu)