TAIWAN'S economy surged 13.3 percent in the first quarter, its fastest year-on-year growth in more than three decades, as the global recovery gave a big boost to the island's signature high-tech exports.

It was Taiwan's second consecutive quarter of expansion since the island's economy emerged from the global recession and the most rapid growth since 1978, its statistics agency said yesterday.

Taiwan's economic growth is expected to be sustained and reach 6.1 percent for all of 2010, which would be the island's second highest annual growth rate since 2004. The agency had earlier predicted economic growth of 9.2 percent for the first quarter and 4.7 percent for all of 2010. Taiwan's economy contracted 1.9 percent in 2009.

Growth in the January-March period was fueled by recovery in most of Taiwan's export markets, and appears not to have been negatively affected by the debt crisis in Europe.

The agency said the Chinese mainland's economic growth - forecast by research firm Global Insight to hit 11 percent this year - was the major force behind Taiwan's surge.

Taiwan's exports grew 44 percent in the first quarter, with the mainland and Hong Kong accounting for more than 40 percent of the island's total exports.

The service sector surged 42 percent during the period, as growing revenue from an increasing number of mainland tourists to Taiwan also helped drive the island's economic comeback.