Taiwan's economy in the second quarter of this year grew 12.53 percent from a year earlier on the back of strong exports and recovering domestic demand, the government said Thursday. The second quarter gross domestic product (GDP) growth beat a forecast of 7.66 percent the government made in May, the Directorate General of Budget, Accounting and Statistics (DGBAS) said. The DGBAS also revised upward the GDP growth for the first quarter to 13.71 percent from a preliminary 13.27 percent. j Taiwan's economy in the April-June period grew for the third consecutive quarter after a global financial meltdown battered the island's economic fundamentals in 2008-2009. Taiwan registered its worst-ever recession in the first quarter of 2009, with GDP falling 9.06 percent, before the local economy gradually recovered and climbed out of the recession in the fourth quarter of last year on rising global demand as the impact from the financial crisis faded. In the second quarter, the local economy benefited from robust global demand, in particular from China and other emerging markets, the DGBAS said in a statement. Meanwhile, domestic consumption recovered to boost sales in the local retail, restaurant, car and tourism businesses, while the high-tech sector expanded its production capacity to lift private investment, the DGBAS added. During the three-month period, Taiwan's private consumption rose 4.41 percent from a year earlier and private investment gained 37.48 percent year-on-year. In the first half of this year, Taiwan's economy grew 13.10 percent from a year earlier, the DGBAS said. The agency said it has raised its forecast for 2010 GDP growth to 8.24 percent from the previous estimate of 6.14 percent. It has also upgraded its estimated 2010 private consumption to 2.78 percent from 1.99 percent, while lifting the forecast of 2010 private investment to 23.40 percent from 18.38 percent. The island's consumer price index (CPI) is expected to rise 1.23 percent largely on stable food prices, the agency said. For 2011, Taiwan's economy is expected to grow 4.64 percent from 2010 with private investment up 1.44 percent, private consumption up 2.64 percent and the CPI up 1.43 percent year-on-year, the DGBAS said. 