* Revises Q1 GDP growth to 6.56%

* Raises 2024 exports outlook to 10.06%

TAIPEI, May 30 (Reuters) - Taiwan's trade-reliant economy is expected to grow at a faster pace in 2024 than previously forecast, owing to high demand for artificial intelligence (AI) applications abroad and solid consumption at home, the statistics office said on Thursday.

Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia, and is home to the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Co Ltd (TSMC) .

Taiwan's gross domestic product this year is now expected to be 3.94% higher than last year, the Directorate General of Budget, Accounting and Statistics said, revising upward the 3.43% forecast it issued in February.

The economy expanded by 6.56% in the first quarter from a year earlier, the agency said, revising slightly higher a preliminary 6.51% reading, its fastest quarterly pace since the second quarter of 2021, when it grew by 8.07%.

The statistics agency now sees 2024 exports growing by 10.06% versus last year, up from 6.14% predicted earlier. In 2023, exports dropped by 9.8% year-on-year.

Exports in April rose for the sixth consecutive month, and may gain more momentum approaching the traditionally strong second half of the year, which bodes well for the island's economic growth amid booming demand for AI and other high-tech products.

The island's economy should get an additional boost from domestic consumption, which remains relatively strong.

(Reporting by Faith Hung Editing by Gareth Jones)