Singapore's economy to grow up to 6.5pc: MIT

Singapore, Feb 14: Singapore's economy is forecast to grow between 4.5 and 6.5 per cent this year, up from the previous cautious forecast of 4-6 per cent as global economic conditions have improved, said the Ministry of Trade and Industry (MTI) today.

Forward-looking indicators pointed towards continued growth in the next few quarters, said the MTI, which reported a 7.9 per cent economic growth last year, an improvement over 6.6 per cent economic growth in 2005.

But it was cautious in this year's projection, especially considering the slowdown in global demand for electronics, Singapore's mainstay export.

Nevertheless, the Ministry is confident of this year's prospects, saying the global economic conditions have improved over the past few months, with international crude oil prices falling from their 2006 peak and fears of a housing market correction in the United States subsiding.

UNI