Taiwan's economy is expected to grow 2.29% this year after suffering its first ever decline in 2001, according to government spokesmen in Taipei yesterday.

The summary figues however fail to show that recovery has been well on track for 6 months, with the fourth quarter of 2001 actually registering a 1.87% growth, well above the predicted figure of -2.68%.

A big exporter in the IT sector, Taiwan has gained from perceptions of a global economic turnaround, increasing exports not just to Western countries like the US but also regionally to Asian countries where positivism is even more pronounced.