StanChart expects S'pore economy to grow by 5.1% in 2010

StanChart expects S'pore economy to grow by 5.1% in 2010
By Chris Howells, Channel NewsAsia | Posted: 15 January 2010 2137 hrs

	Photos 1 of 1 Singapore's night skyline

SINGAPORE: Despite the brightening outlook, Standard Chartered Bank said it expects some volatility ahead for export-oriented economies in Asia, including Singapore.

Overall, the lender is forecasting the Singapore economy to expand by 5.1 per cent in 2010. This is slightly higher than the government's estimate of 3 per cent to 5 per cent growth.

StanChart expects the Singapore dollar to continue appreciating against the US dollar - ending the year at near S$1.32 to the greenback.

StanChart also expects inflation to hit 3 per cent. The bank said this will give the central bank impetus to consider tightening its monetary policy later this year.

Tai Hui, regional head of economic research, S.E Asia, Standard Chartered Bank, said: "Going into H2, we will start to see a bit more inflation pressure building up in the economy and a bit more sustainability building in the economy.

"And both of these factors should persuade the central bank to consider tightening policy moderately in the October monetary policy statement."

- CNA/sc

- wong chee tat :)