Economy Forecast

A quarterly survey of 18 economists by the Singapore Cenral Bank forecast Singapore economy growth at 7.5%, up from 6% in June poll. In his National Day Rally speech, PM Lee raised the annual growth forecast for the next 5 to 10 years to 4%-6%, up from 3%-5%.

Forecast for 2007:
- Growth 7.5% (up fr June's 6%, and 2006 at 7.9%)
- Construction 15%, Financial Services 13.5%, Manufacturing 7.2% and non-oil domestic exports 6.2%
- Unemployment 2.5% (2Q at 2.4%, lowest in 6 years)
- Inflation 1.5%
- S$1.50 against US$1

Q2 private home prices at its fastest pace in 8 years, while office rents in CBD are at 10 years high. Economists forecast GDP to expand 6.5% in 2008.

Quote:
"Despite the rosy prospects, we believe in “Being Prepared”, as the scouts would say."
~ Goh Chok Tong (Chairman, Senior Minister) in MAS' 2006/2007 Annual Report

* MAS-Opening Remarks , AsiaOne-Economy *

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For tis yr, the outlook still rosy provided tt the sub-prime mortgage thingy is under ctrl. Now banks are oso more cautious in their lending.

* AsiaOne-Banks *