Economic growth to exceed govt forecast

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Europe's debt crisis may be affecting global markets, but private sector economists expect Singapore's 2011 growth to be higher than the government’s forecast, according to The Straits Times.

A poll by the Monetary Authority of Singapore (MAS) revealed that the economy will grow 5.2 percent this year, slightly above the government’s estimate of 5.0 percent.

This is attributed to the stronger-than-expected performance in the manufacturing sector.

According to data from the Economic Development Board (EDB), manufacturing output surged 24.4 percent in October, far exceeding the 8.6 percent forecast, while industrial output in October climbed 14.2 percent month-on-month.

Meanwhile, economists downgraded Singapore’s 2012 growth forecast to three percent, the top end of the government forecast range.

A group of 21 analysts and economists surveyed by the MAS offered this subdued outlook, as Europe faces an impasse in dealing with its debt crisis. Another major concern is that China may also record weaker growth.

The survey also showed that next year’s median forecast for the country’s growth is three percent, down from 4.9 percent in September. The government anticipates the 2012 economy to expand between one and three percent.

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