PSA Singapore

Singapore's economy is predicted to grow at a faster pace than previously forecast this year as manufacturers boost output and consumers increase spending, a central bank survey showed.

The Monetary Authority of Singapore (MAS) said that its latest survey of private sector economists, published last week, showed growth for 2010 is likely to be 14.9 per cent.

This represents an increase from the 9 per cent gross domestic product that economists predicted in a previous June survey, and also lies withih the government's official full year forecast for a growth of between 13 and 15 per cent.

This would make Singapore the world's fastest growing economy, Reuters said.

While manufacturing is expected to continue to power Singapore's growth this year, the government has warned that manufacturing growth will slow down in the second half of the financial year.

However, stronger contributions from the service industries, as new casino resorts spring up, will continue to drive forward economic growth.

The opening earlier this year of Singapore's first two casino resorts has helped attract record visitors and fuel tourist spending, according to press reports.

The resorts are expected to indirectly help the economy by boosting job creation and retail spending. Visitor arrivals to Singapore grew 24 per cent in July from a year earlier to a record 1.1m, Associated Press said.

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