The Ministry of Trade and Industry (MTI) expects Singapore’s economy to grow between four and six percent this year, attributed to the continuous recovery of the global economy.
However, MTI warned that the inflation forecast for 2011 has been revised upwards.
“For 2011, the inflation forecast has been revised from 2.0 to 3.0 percent to 3.0 to 4.0 percent. In particular, inflation is expected to rise further to 5.0 to 6.0 per cent in the first few months of this year,” said MTI in a statement.
It noted that inflation rate was expected to increase further (by as much as five to six percent) in the first few months of the year and to moderate in the second half.
The forecast comes on the back of the 14.5 percent gross domestic product (GDP) growth for 2010, which was largely boosted by the manufacturing sector, particularly biomedical manufacturing.