Government forecasts economy could grow 4 to 6% in 2011

But the Ministrry of Trade and Industry warns several downside risks remain..

The steady pace of growth in the advanced economies is expected to lend support to Singapore’s manufacturing activities, said Singapore's Ministy of Trade and Industry. In Asia, resilient domestic demand will continue to drive intra-regional trade flows and benefit Singapore’s wholesale trade sector. Strong visitor arrivals, particularly from the key markets within the region, will continue to underpin growth in Singapore’s tourism-related services sectors.

In addition, domestic factors such as capacity expansion in the electronics and biomedical manufacturing clusters will bolster growth in the manufacturing sector in 2011.

Nevertheless, downside risks remain. First, sovereign debt concerns in the peripheral EU economies persist. Second, the inflationary concerns in Asia may prompt further monetary tightening. Domestically, the economy is also facing a tighter labour market.

On account of these factors, the Ministry of Trade and Industry expects the Singapore economy to grow by 4.0 to 6.0 per cent in 2011.

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