SINGAPORE: Singapore's economy is likely to grow 6
percent this year, at the center of the government's target range, led
by robust expansion in the services sector and modest growth in
manufacturing, a quarterly central bank survey of economists showed
The Monetary Authority of Singapore's survey shows economists have
upgraded their outlook for the economy from March's median growth
forecast of 5.4 percent.
The upgrade comes after the economy expanded a faster-than-expected
6.1 percent from a year earlier in the first quarter, led by surprising
strength in services and construction that offset weak industrial
The new forecasts indicate the shift in growth drivers will hold
through the year, as economists lowered manufacturing growth targets
but upped their expectations for services and construction.
Manufacturing is expected to grow 6.6 percent in 2007, slower than
the 7.4 percent forecast in the March survey. Financial services,
however, is now expected to expand 10.2 percent versus the previous
forecast of 7.6 percent. The construction industry is also expected to
grow by 10 percent, faster than the previous forecast of 4.8 percent.The government raised its economic growth forecast for 2007 to a
range of 5-7 percent from 4.5-6.5 percent when it issued the
first-quarter gross domestic product figures.
The late May survey of 16 forecasters shows economists are expecting
the economy to grow a median 6.1 percent on year in the second quarter,
matching the first quarter's growth rate.
For 2008, the forecast for economic growth rose to 5.8 percent from
5.5 percent in the March survey. The government hasn't issued an
official growth target for 2008.