Taiwan will post a growth of 5.11 percent in real gross domestic product (GDP) in 2010 amid an overall economic recovery, the Taiwan Institute of Economic Research (TIER) forecast Monday, revising its previous prediction of 4.81 percent. The latest figure represents a reversal from a 1.87 percent GDP contraction recorded in 2009, the TIER said in its monthly economic report released that day. The institute also forecast that annual economic growth will reach 9.64 percent in the first quarter of the year, followed by 7.19 percent in Q2, 3.11 percent in Q3 and 1.52 percent in Q4. TIER Macroeconomic Forecasting Center Director Chen Miao said the upward adjustment of the GDP growth in 2010 was made after researchers observed trends, including an increase in corporate intention and ability to launch investment projects. Judging from that, TIER predicted that the investment growth rate will rise to 15.3 percent this year, while exports of both commodities and services will grow by 16.92 percent, Chen said. In terms of private consumption, Chen said, TIER kept its previous forecast of 2.07 percent growth unchanged because the researchers did not see any factors that would affect the growth rate. TIER President David S. Hong pointed out that the private consumption growth rate has rarely surpassed the 3 percent mark since 2000, restrained by unemployment and consumer prices. In the TIER report, Taiwan's exports are projected to grow 26.83 percent and imports by 33.87 percent this year, which would translate into a trade surplus of US$24.879 billion. TIER also forecast that wholesale prices will move higher by 5.27 percent due to increasing global demand and inflation caused by depreciation of the U.S. dollar. Consumer prices are anticipated to grow 1.77 percent year-on-year, resulted from rising costs of raw materials and fuel, the report went on. In terms of the local currency, the institute predicted that the New Taiwan dollar will see a trend of appreciation this year thanks to increasing demand for the major Asian currencies and a market situation that will put pressure on the U.S. dollar to depreciate. In this regard, the institute forecast that the local unit will stand at an average of NT$31.35 against the greenback this year. 