Taipei  - Taiwan's foreign trade is expected to shrink in 2009 owing to lingering effects of the global financial crisis, according to a government report released Sunday.

Taiwan's exports last year grew 7.19 per cent to 264.4 billion US dollars while imports rose 13.83 per cent to 249.6 billion, according to the report by the Bureau of Foreign Trade carried by the Central News Agency. The trade surplus fell to 14.8 billion dollars from 2007's 27.4 billion.

For 2009, exports are forecast to contract 1.35 per cent to 260.8 billion dollars, imports to drop 4.2 per cent to 239 billion and the trade surplus to increase to 21.7 billion.

The report said that negative factors for Taiwan's 2009 foreign trade include the lingering effects of the global financial crisis and recession in the United States and Japan.

"If China's economic growth continues, it will deal a heavy blow to Taiwan's economy," the report said. China is Taiwan's top trading partner and accounts for a quarter of Taiwan's exports. (dpa)