1% upgrade in GDP forecast herald sunny future for SG economy

However, inflation may still remain elevated due to various factors, said OCBC.

The analysts have upgraded their 2011 GDP growth forecast from 5% to around 6%.

This is on the back of a strong Q1 GDP growth flash estimates which beat market expectations to expand 8.5%, and the astonishing pick-up in the manufacturing sector.

"Given elevated crude oil prices and announced 6.5% average utility tariff hikes for Q3, inflation may still remain elevated," said OCBC. "Albeit the base effects will contribute to some easing in year-on-year terms."

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