The Singapore economy is expected to grow gradually, with gross domestic product (GDP) growth in 2010 expected to be lower than previous post-recession periods, local media reported on Thursday.
The Monetary Authority of Singapore (MAS) said in the Macroeconomics Review that compared to six months ago, the outlook for the second half of 2009 and for 2010 is "markedly more optimistic," adding that the GDP growth in 2010 will likely shift to a more sustainable trajectory, underpinned by a modest turnaround in final demand in Singapore's key external markets, local broadcaster Channel News Asia reported.
There remain concerns about the resilience of global demand, given the lingering weakness in the financial sectors and labor markets of developed economies.
The MAS added that Singapore's job creation could be modest in 2010 as the relatively small job losses resulting from this downturn means that firms may be carrying surplus labour. It also expects inflation here to come in at around 0 percent in 2009, before rising to 1 to 2 percent in 2010.
The Singapore government earlier this month upgraded the country's economic growth forecast for 2009 to minus 2.5 to minus 2.0 percent, up from its previous forecast of minus 6.0 to minus 4.0 percent.