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UPDATE 1-Taiwan economy shrinks more than expected in Q1, more rate cuts seen

TAIPEI, April 29 (Reuters) - Taiwan's trade-reliant economy shrank by a worse-than-expected 0.84 percent in the first quarter as exports tumbled, pressuring the new government to come up with stimulus measures and cementing views the central bank will cut interest rates again in coming months.

The island's economy is clearly struggling to shake off last year's recession as prolonged weakness in global demand weighs on Asia's exporters, even those like Taiwan which sell a lot of popular, higher-end products such as smartphones.

The contraction in gross domestic product (GDP) in January-March was deeper than economists' expectations of a 0.6 percent fall from the same period a year earlier, and followed a drop of 0.52 percent in the fourth quarter of 2015.

On a seasonally adjusted, annualised basis (SAAR), the economy did manage to eke out 0.76 percent growth, but that also signalled a sharp deceleration from the 2.18 percent rise in the final quarter of 2015, the statistics...