Economists expect a 5.1 percent growth in Singapore’s economy in 2011, moderating to only a third of the 15 percent expected growth this year.
The median estimates from 22 economists polled by the Monetary Authority of Singapore (MAS) last month were each 0.1 of a percentage point higher than estimates in the previous quarter.
Growth forecasts from the survey are in line with the current official 2011 growth forecast range of 4 percent to 6 percent, as well as the official 2010 forecast of 15 percent, placing the country among the fastest growing economies worldwide this year.
The survey also predicted a higher than 50 percent probability that the gross domestic product (GDP) could grow over 15 percent this year.
Economists also increased their 2010 estimates for growth in financial services and manufacturing, but moderated their growth prospects for wholesale and retail trade, construction, as well as hotels and restaurants.
They expected strongest growth in financial services, driven by strong capital inflows and the robust hotels and restaurants sector next year.
Economists said the opening of more attractions in the integrated resorts (IRs) and a buoyant economic outlook will boost tourist inflows and tourism-related services segments.
Job creation will likely benefit from the strong services sector, with the unemployment rate expected to fall further to 2 percent next year from the estimated 2.1 percent this year.
However, economists now expect a faster growth in prices than what they predicted in the previous quarter. The median consumer price inflation forecast for next year now stands at 2.9 percent, higher than the 2.5 percent forecast in the September survey.
The Singapore dollar is also likely to appreciate further in 2011 to $1.24 against the US dollar, from an expected $1.29 by the end of the year, driven by the strong economic recovery in Asia and loose US monetary policy prompting investors to look for higher yields in Singapore.