Singapore economists raise GDP growth forecast for 2006: survey

Economists in Singapore have revised their forecast of the country's real gross domestic product (GDP) growth for 2006 to 6.7 percent from their previous estimation of 5.9 percent.

According to the results of a quarterly survey released by the Monetary Authority of Singapore (MAS) on Wednesday, the estimated growth rates for all economic sectors except construction are higher than those shown in last poll.

Private consumption is expected to increase by 3.9 percent this year, down from the 4.6 percent estimated in the previous survey, while estimations of the consumer price index (CPI) inflation and the year-end unemployment rate remain at 1.5 percent and 2.5 percent respectively.

The professional forecasters also expect the Singapore dollar to continue appreciating against the U.S. dollar with the exchange rate reaching 1.54 Singapore dollars to one U.S. dollar from 1.6 as forecast three months ago.

"Overall, the respondents are of the view that the near-term economic prospects for the Singapore economy remain sanguine, underpinned by the continuing favorable external conditions as well as resilience in domestic consumer sentiment," the survey results said.

Singapore's GDP grew by 6.4 percent in 2005 over the previous year and the Ministry of Trade and Industry (MIT) raised its economic growth forecast for 2006 to between 5 percent and 7 percent from between 4 percent and 6 percent in mid-May.

Source: Xinhua