TAIPEI, May 27 -- Taiwan's economy continued to grow in April, with an economic indicator of business activity signaling steady growth by flashing a green light for a third consecutive month, the island's statistic authority said on Tuesday.

The score of the "economic comprehensive index" increased by four points to 29 last month, the highest since May 2011, the authority said.

It predicted that Taiwan's economy will achieve an annual growth of 2.98 percent in 2014, following recent economic indicators showing good performance.

A color code is used by the island to gauge economic health, with red signaling overheating, amber for slight overheating, green for steady growth, yellow-blue for a slowdown and blue for recession.

Affected by the European debt crisis, the island's economy has dipped since 2011, only achieving two green lights -- in June and December of 2013. Blue and yellow-blue lights flashed most of the time.