Taiwan-based policy think tank Chung-Hua Institution for Economic Research (CIER) on Thursday forecast that the island's GDP will grow by 3.03 percent, in view of a slowly recovering global economy.

The CIER, one of the top policy think tanks in Taiwan, predicted that exports will continue to play a major role in leading the growth, and the growth rate of exports in 2014 will be 3.71 percent.

However, the CIER also pointed out in its annual forecast that the impetus for further economic growth is sluggish, and that Taiwan may face a prolonged period of low growth because of insufficient domestic demand and a slowing of exports and imports.

The CIER pegged its projection of Taiwan's annual growth in 2013 at 1.72 percent, lower than that predicted by the island's statistics authority.

In late November, the statistics authority of Taiwan lowered its forecast of 2013 annual growth to 1.74 percent from its previous 2.31 percent.