Taiwan's economy is likely to grow at a slower pace this year that initially forecast, the statistics office said on Friday, lowering its outlook due to global inflation and slowing consumer demand in major markets.

The downward revision was accompanied by the statistics office trimming its growth export forecast for this year, though it said semiconductor demand would still help drive the economy.

Gross domestic product (GDP) now is expected to expand 3.76% this year, the Directorate General of Budget, Accounting and Statistics said, down from 3.91% growth forecast in May.

That will be a slower pace than the 6.45% logged for 2021, which was the fastest rate in over a decade since the economy expanded 10.25% in 2010.

The statistics agency now sees exports rising 13.51% this year, from 14.62% predicted earlier.

In its first estimate for next year, it said it saw 2023 GDP expanding 3.05%, while exports would only inch up 2.64%.

In the second quarter, GDP expanded by a revised 3.05% from a year earlier, slightly down from a preliminary reading of 3.08%, the agency added. (Reporting by Roger Tung and Jeanny Kao; Writing by Ben Blanchard; Editing by Mark Heinrich)