News Room - Business/Economics

Posted on 14 Dec 2007

Singapore economy to slow next year, economists' survey predicts

Singapore's economic growth is expected to slow next year, with inflation likely to accelerate due to rising rents, wages and global oil prices, according to a central bank poll issued Friday.

The Monetary Authority of Singapore's quarterly survey of 18 economists, conducted late November, showed a median gross domestic product growth forecast of 6.3 percent in 2008, lower than the previous poll's forecast of 6.5 percent.

That's down from the 8 percent growth expected for this year.

The central bank had in October said it expected economic growth of 4-6 percent in 2008, slowing from the expansion of 7.5-8 percent it projected for this year.

The latest survey suggests services and manufacturing will continue to support economic growth even as the manufacturing sector is exposed to a slowdown in the U.S.

The financial services sector is expected to grow 9 percent next year, while construction and manufacturing are expected to expand 13.5 percent and 6.8 percent respectively, according to the survey.

The economists polled also expect the economy to grow a median 7.7 percent on year in the fourth quarter of 2007, lower than the third quarter's growth of 8.9 percent.

On the inflation front, the survey said that consumer price inflation is likely to rise to 3.7 percent in 2008 from 2 percent this year. (**)