ST : 5.5% growth next year

Dec 10, 2009
5.5% growth next year
Forecast is higher than Govt's figure of 3% to 5%
By Robin Chan



Growth is tipped to hit 5.5 per cent next year after a 2 per cent contraction this year - based on the median expectations of 20 economists, released yesterday by the Monetary Authority of Singapore (MAS). -- ST PHOTO: SAMUEL HE

PRIVATE sector economists expect Singapore to grow even faster next year, as more signs emerge that the economy is returning to normal.

Growth is tipped to hit 5.5 per cent next year after a 2 per cent contraction this year - based on the median expectations of 20 economists, released yesterday by the Monetary Authority of Singapore (MAS).

This is better than the 4.5 per cent growth they predicted in September, and beats the Government's official forecast of 3 per cent to 5 per cent growth in 2010.

'The official view tends to be more conservative. This is natural as from a policymaker's perspective, it is always safer to stay on the cautious end of a forecast,' said DBS Bank economist Irvin Seah. 'But from the private sector perspective, many recent indicators continue to point to a recovery in the global economy.'

Economists are looking at the low base from early this year, when the economy had contracted drastically, to give a boost in growth numbers in the first half of next year. They are also counting on major economies stabilising so that consumer confidence can rebound and support manufacturing and export activity here.

'While we are not expecting demand to come back in roaring fashion next year, we do expect demand to be good and orders stable,' said Credit Suisse economist Joseph Tan.

chanckr@sph.com.sg