World Business
Singapore upgrades growth forecast for 2010
(Xinhua)
Updated: 2010-04-14 15:07
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SINGAPORE: Singapore on Wednesday revised its gross domestic product (GDP) growth forecast this year as the country's economy reported a strong expansion in the first quarter and it is expected to enjoy an overall improved outlook for external economies for the rest of this year.
According to a statement by the country's Ministry of Trade and Industry (MTI) on Wednesday, the city state expects its economy to grow at 7 percent to 9 percent this year, upgrading from the earlier 4.5 percent to 6.5 percent forecast.
The MTI attributed this expansion to the strong growth in the manufacturing sector which grew by 139 percent in the first quarter of this year compared to the contraction of 29 percent in the fourth quarter of last year.
The construction sector expanded by 11.3 percent on a year-on- year basis in the first quarter of this year while the services producing industries also grew by recording a year-on-year increase of 8.4 percent.
The MTI said while downside risks remain, such as a sovereign debt crisis in Europe or a slowdown due to withdrawal of fiscal measures, these have been outweighed by stronger signs that global economic conditions are improving.
The overall consumer price index (CPI) inflation forecast for 2010 is also revised from 2 percent to 3 percent to 2.5 percent to 3.5 percent in view of the strong economic recovery.
Last year, Singapore's economy contracted 2 percent following an increase of 4 percent on a year-on-year basis in the fourth quarter.
In February, the city state had revised its GDP and CPI growth forecast.
