TAIPEI, June 30 (Xinhua) -- A Taiwan think tank has raised its forecast for the island's economic growth for 2018.

The Yuanta-Polaris Research Institute has updated its forecast from 2.4 percent to 2.55 percent, citing stable international economic growth, rising private consumption and stronger export growth.

But the institute said long-term prospects did not look good for the island.

Liang Kuo-yuan, with the institute, said that Taiwanese companies lack confidence in their prospects and the public in Taiwan are unhappy with policies made by Taiwan's current Democratic Progressive Party (DPP) administration, hampering the economy.

Liang said that most company CEOs think that the mainland market has a big impact on their companies, but under the DPP administration, their confidence in investment is low.

Taiwan's economy expanded by 2.84 percent in 2017.