Taipei  - A Taiwan research institute Thursday raised the island's 2008 economic growth forecast to 4.67 per cent, spurred by president-elect Ma Ying-jeou's promise to open trade with China,

The private Chunghua Institute for Economic Research raised the annual economic growth from the 4.17 per cent target it set three months ago, but still down from 2007's 5.7 per cent growth.

Analyst Wang Li-jung said the institute raised the annual economic growth target because president-elect Ma has promised to fully open trade with China after he is sworn in on May 20.

"Considering the arrival of mainland tourists and the pouring in of foreign investment, we made the adjustment," she said.

Wang said Taiwan's economy would grow even faster if Taiwan opens sea and air links with China, as pledged by Ma. "But these measures will take time to achieve," she said. (dpa)