Taiwan's economy will probably grow more slowly in 2023 than previously forecast, the government's statistics office said on Friday, held back by soft demand for its technology products amid global economic woes.

The island's gross domestic product (GDP) is now expected to expand 1.61% in 2023 from last year, the Directorate General of Budget, Accounting and Statistics said, revising its earlier 2.04% growth forecast.

The statistics agency now sees 2023 exports falling 9.51% from last year, compared with a 7.27% slide predicted earlier.

For 2024, GDP is expected to grow 3.32%, the agency said, offering its first forecast for next year.

Second-quarter GDP rose by a revised 1.36% year on year versus a preliminarily reading of a 1.45% expansion, the agency said, returning to growth after two quarters in a row of contraction.

Taiwan, home to major tech companies including the world's largest contract chip maker TSMC, has seen its exports slide amid interest rate hikes around the world in response to rising inflation and growing U.S.-China trade tensions.

In July, Taiwan's exports fell for an 11th straight month as weak demand from the U.S. and China was countered by growing momentum in artificial intelligence applications. The government has said growth in exports may resume from September, though more likely from November. (Reporting by Jeanny Kao and Faith Hung; Editing by Himani Sarkar and Kim Coghill)