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Analysts: Singapore economy to shrink 1 pct in '09

Analysts: Singapore economy to shrink 1 pct in '09

Singapore analysts slashed forecasts for 2009 economic growth _ and now expect GDP to shrink next year _ as the global slowdown hurts demand for the city-state's exports.
The city-state's gross domestic product will likely shrink 1 percent in 2009, according to the median forecast of 17 economists in a quarterly survey by the central bank.
As recently as September, they had expected the economy to grow 4.6 percent next year.
Analysts expect the economy to grow 2.2 percent this year, down from their 4.2 percent forecast in September, said the central bank, known as the Monetary Authority of Singapore.
Non-oil exports, which account of about 70 percent of GDP, have plummeted in the second half of the year as demand from the U.S, Europe and Japan dried up. Analysts expect non-oil exports to fall 6.2 percent this year and drop another 9.0 percent next year.
The government said last month the economy slipped into recession in the third quarter, shrinking 6.8 percent from the previous quarter after contracting 5.3 percent in the second quarter.
The government expects 2.5 percent growth this year and economic activity next year to range from a 1 percent contraction and 2 percent growth.
The inflation rate will likely decrease to 1.7 percent next year from 6.5 percent this year, according to the analyst survey.


Updated : 2021-10-17 13:35 GMT+08:00