A leading Taiwan-based think tank on Friday raised its forecast for the island's economic growth this year, citing a better-than-expected trade performance.

Taiwan's economy is expected to expand 2.61 percent this year, up 0.13 percentage points from a previous forecast but lower than the 2.89-percent growth rate for 2017, according to the Chung-Hua Institution for Economic Research (CIER).

The CIER backed its raise with the island's strong trade data in the second half of this year, against a relatively high comparative base for the same period of last year.

The island's exports expanded by 8.1 percent year on year from January to September, while imports increased 11.9 percent. Exports to the mainland and Hong Kong grew 10.5 percent year on year during the same period.

However, the think tank forecast a lower growth rate of 2.18 percent for 2019, warning of possible impacts in the first half of next year.

The Chinese mainland saw its economy expand at 6.7 percent in the first three quarters, a pace in line with market expectations and higher than the government's annual growth target of around 6.5 percent, official data showed Friday.