Singapore Economy May Expand 5.5% in 2008, MAS Survey Shows
Singapore's economy will probably expand less than initially estimated this year as export growth and private consumption slows, a central bank survey showed.
Gross domestic product in 2008 will increase 5.5 percent, according to a survey of economists by the Monetary Authority of Singapore released today, lower than the 5.6 percent median forecast in March. The economy grew 7.7 percent in 2007.
Manufacturers in Singapore and across Asia face easing demand amid a slowdown in the U.S., the region's largest export market. The city-state is facing weaker growth at a time when inflation is at the quickest pace in almost 26 years.
The economy will probably expand 4.7 percent this quarter, the survey of 21 economists showed, faster than a March estimate of 4.4 percent. The economy grew an annualized 14.6 percent in the three months ended March 31 from the previous quarter.
Manufacturing will probably rise 5.5 percent this year, faster than March's estimate of 5 percent, the report said. Still, growth in non-oil domestic exports is now expected to slow to 3 percent this year, from an earlier forecast of 5 percent, according to the survey of economists.
Singapore's trade promotion agency last month lowered its forecast for export growth this year to between 2 percent and 4 percent, from an earlier range of 4 percent to 6 percent no checking account payday advance paydayloans.
Construction will probably advance 11.7 percent in 2008, and financial services may grow 9 percent, the economists estimated.
Faster Inflation
Singapore's inflation rate will average 6 percent this year, up from a median prediction of 5 percent in March, the bank's survey showed. Consumer prices will probably gain 7.5 percent in this quarter, the report said.
The Monetary Authority of Singapore last month increased its forecast for inflation in 2008, predicting consumer prices will gain between 5 percent and 6 percent in 2008. The central bank has also allowed its currency to strengthen at a faster pace against the U.S. dollar this year, as it says the exchange rate remains its most effective tool to fight inflation.
Economists surveyed said the Singapore dollar will probably end this quarter at S$1.355 versus the U.S. dollar, and S$1.323 at the end of 2008. The currency was S$1.3766 against its U.S. counterpart as of 11:10 a.m. in Singapore today.
Filed under: term by John