Singapore’s economic growth is expected to slow to 5.7 percent this year from its record pace in 2010, according to a study conducted by the Monetary Authority of Singapore (MAS).
The survey of 20 analysts by Singapore’s central bank showed that growth in the construction, financial services and manufacturing sectors are all expected to slow down this year, following a 14.5 percent gross domestic product (GDP) gain last year.
In an earlier survey conducted in December, analysts had predicted that the economy would grow 5.1 percent this year.
The survey also revealed that the inflation rate could rise to four percent, the highest since 2008 and at the upper end of an official forecast range of three to four percent.
Inflation could hit 5.4 percent in the first quarter of 2011, said the survey, which comes ahead of April’s monetary policy review.
Annual inflation hit 5.5 percent in January, well above analysts’ expectations.
Like most other Asian nations, Singapore is struggling with higher prices because of the region’s robust economic growth, stronger oil and commodity prices and flush liquidity.
The unemployment rate will also hit two percent, while the exchange rate at the end of the year will stand at S$1.23 per US dollar, said the survey.