SINGAPORE REVISES GDP GROWTH FORECAST TO 5-7 PCT THIS YEAR

SINGAPORE, May 19 (Bernama) -- The Ministry of Trade and Industry (MTI)
announced Thursday that it expects the Singapore economy to grow by 5.0 to 7.0
per cent in 2011.

This is an upward revision from the earlier forecast of 4.0 to 6.0 per cent.

In a statement Thursday, MTI attributed the revised forecast to
better-than-expected and broad-based expansion in the first quarter.

It is also due to the expected boost to growth from industry-specific
factors in the rest of the year.

The Singapore economy grew by 8.3 per cent on a year-on-year basis in the
first quarter of 2011, compared to the growth of 12.0 per cent in the preceding
quarter.

On a seasonally-adjusted quarter-on-quarter annualised basis, the economy
expanded by 22.5 per cent, a strong improvement from the growth of 3.9 per cent
in the preceding quarter.

MTI said the increase in economic activity in the first quarter was
broad-based, with growth led by the manufacturing sector.

On a year-on-year basis, the manufacturing sector grew by 13.1 per cent.

The near-term external environment is expected to be conducive to
Singapore’s growth for the rest of 2011.

In the financial services sector, MTI said lending and insurance activities
will be supported by the continued recovery in the domestic and regional
economies.

Sentiment-sensitive industries within the sector could also see some
improvement, as fund managers have started rebalancing their portfolios towards
Asia.