Growth, inflation outlook raised in MAS survey

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http://www.todayonline.com/Hotnews/EDC120614-0000058/Growth,-inflation-outlook-raised-in-MAS-survey

The Singapore economy is likely to grow at a faster pace this year than analysts were expecting three months ago, spurring inflationary pressures, a central bank survey of economists said.

Gross domestic product may increase 3 per cent this year, compared with last quarter's survey for a 2.5 per cent gain, the Monetary Authority of Singapore's (MAS) Survey of Professional Forecasters showed.

The economists also upgraded their second-quarter growth forecast to 2.8 per cent, up from 2.5 per cent previously.

Despite the improved outlook, economists said they expect significant downside risks to remain. 

Slower growth was seen for the key financial services sector this year, which was trimmed to 2.7 per cent from 4 per cent previously.

The survey also showed GDP growth this year will likely be led by construction expanding 6.2 per cent, compared with the previous 1.7-per-cent estimate.

As for inflation, the forecasters now see the consumer price index rising 4.2 per cent this year, up from 3.5 per cent previously.

Singapore's official forecast is for GDP growth of 1 to 3 per cent this year, with inflation coming in at 3.5 to 4.5 per cent