Singapore’s
economy will grow at a slower pace this year with economists
forecasting inflation to be higher than expected compared to three
months ago, according to the latest quarterly Survey of Professional Forecasters by the Monetary Authority of Singapore (MAS).
The country’s gross domestic product (GDP) will likely grow by 2.4
percent this year, lower than the 3.0 percent median estimate in the
previous survey.
Notably, economists cut their estimates for all sectors, including
manufacturing at 2.7 percent and financial services at 1.1 percent, both
down from 3.0 and 2.7 percent respectively.
Meanwhile, the consumer price index (CPI) is expected to grow 4.4 percent in 2012 compared to 4.2 percent previously.
Despite this, estimates for core inflation slipped to 2.5 percent from
2.7 percent previously, which could influence MAS to loosen its policy
slightly when it issues its half-year monetary policy statement in
mid-October.
Core inflation excludes accommodation and land transport costs which are primarily influenced by government policies.
In addition, most forecasters feel that the central bank will slow the
pace of appreciation in the Singapore dollar next month in an effort to
improve the economy.
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