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Singapore growth to slow as US, Europe struggle

Singapore growth to slow as US, Europe struggle

Singapore's economic growth will likely slow this year and next as struggling developed countries drag on demand for the city-state's exports, a quarterly central bank survey of analysts showed Wednesday.
The economy will probably expand 5.3 percent this year, according to a survey of 20 analysts conducted by the central bank. Analysts had expected the economy would grow 6.2 percent this year in the previous survey in June and 5.7 percent in the March survey.
Analysts predicted the economy will grow 4.9 percent next year.
"In the short-term, we're not going to be immune from a slowdown in the major drivers of the global economy," Singapore Finance Minister Tharman Shanmugaratnam told reporters Tuesday at a World Bank press conference. "But we can deal with the short-term, we've got the fiscal space to deal with it."
Singapore's economy, which surged 15 percent last year, relies on manufacturing, finance and tourism and is among the most vulnerable in Asia to downturns in consumer demand in developed nations. Most economists expect the U.S. and Europe to avoid recession this year but growth will likely be less than two percent.
Growth in Singapore this year will likely be led by financial services expanding 9.6 percent and a 5.4 percent increase in manufacturing, according to the survey. Construction will grow 2.1 percent while non-oil domestic exports jump 5.4 percent.
The inflation rate will probably rise to 4.5 percent this year, up from 2.8 percent in 2010. The unemployment rate will be 2.2 percent and the exchange rate will end 2011 at 1.19 Singapore dollars per U.S. dollar, the survey predicts.


Updated : 2020-12-05 11:10 GMT+08:00