TAIPEI, Taiwan (AP) - Taiwan's government is forecasting the island's economy to grow at a slower 4.8 percent pace this year because demand for exports is likely to weaken amid global financial instability.
The new forecast is down from the 5 percent growth it predicted last month.
The government said Thursday the economy grew 5.6 percent in the first six months of this year and 5.0 percent in the second quarter. First quarter growth was 6.2 percent.
The government said third quarter growth could slow to 3.5 percent before rising to 4.7 percent in the fourth quarter. Growth will be supported partly by demand for Taiwan-made smartphones and tablet computers, it said.
It said machinery exports will also remain strong because China needs to buy more automated equipment to offset rising labor costs.