Singapore expects 4-6pc GDP hike, fears rising inflation

SINGAPORE's Ministry of Trade and Industry (MTI) expects a four-six per cent increase in GDP in 2011 after reporting a 14.5 per cent increase in 2010, reversing a decline of 0.8 per cent in 2009.


The 2011 outlook is strong for Singapore but inflationary concerns in Asia may prompt further monetary tightening with a inflation forecast revised from two to three per cent to three per cent to four per cent in the first months of the year, rising as high as five or six per cent later.


Its fourth quarter results revealed real gross domestic product grew 12 per cent year on year basis, improving on the third quarter increase of 10.5 per cent.


It revised fourth quarter seasonally-adjusted annualised growth to 3.9 per cent from 6.9 per cent, and its 2010 full-year growth to 14.5 per cent from 14.7 per cent which was blamed on a decline manufacturing during December.


But the strength of the 2010 results were attributed to the manufacturing sector and the surge in electronics and biomedical output, up by 29.7 per cent compared to the sector's 4.2 per cent contraction in 2009.


The construction sector had a more modest pace of 6.1 per cent compared to 17.1 per cent the year before.


Singapore's rosy outlook is helped by Asia's domestic demand said the government, which will continue to drive intra-regional trade flows and benefit the country's wholesale trade sector.
(Source:http://www.schednet.com)