TAIPEI (AFP) - Taiwan said Thursday its economy grew a higher-than-expected 12.53 percent year on year in the second quarter of 2010, confirming the export-dependent islands recovery from the global downturn. The figure compares with a predicted year on year growth figure of 7.66 percent forecast by the Directorate General of Budget, Accounting and Statistics three months ago. The second-quarter figure showed Taiwans economy expanding at an even faster rate than Chinas 10.3pc in the quarter. In the first half of the year, Taiwans economy grew by 13.10 percent, which is a splendid performance, the directorate said in a statement. The expansion in the second quarter came mainly as a result of a boost to exports, which rose 40.21 percent from a year earlier, the directorate said. It attributed the rise in exports to worldwide endeavours to replenish inventories as well as strong growth in China and other emerging markets. Relevant government officials were too conservative in making the second-quarter prediction, Cheng Cheng-mount, chief economist at the Citibank Taiwan Ltd, told AFP. The directorate also revised the first quarter growth figure on Thursday to 13.71 percent, up from the 13.27 percent announced in May. Looking ahead, the directorate said it expected growth in the third quarter to ease to 6.90 percent, and fall to 1.37 percent in the final three months. But in the second half of the year, the economy is expected to rise 4.03 percent as global growth will tend to slow down, and because of a high base from last year, it said in a statement. The directorate raised its forecast for full-year economic growth to 8.24 percent from 6.14 percent previously. The full-year growth rate of 8.24 percent is underestimated too, if you look at the economy figures released for July. They did not show any sign of a sharp downturn from the second-quarter, Cheng said. But the islands economy is expected to slow down next year as the directorate forecast it will grow 4.64 percent, including 0.4 percentage point contributed by a historic trade pact with China. Negotiators from Taiwan and China signed the agreement in June, in the boldest step yet towards reconciliation between the former rivals, who split after the end of a civil war in 1949. Signing the pact has been a major priority Mas Beijing-friendly Kuomintang party, which swept to power in 2008 on a promise to improve the islands economy through better ties with China.