Singapore GDP growth forecast at 5% in 2011

Despite the 14.9% yoy GDP growth for 2010, GDP growth should moderate to around 4-5% in 2011.

OCBC said that manufacturing growth should also normalise to a more modest single-digit growth given the high base. Market expectations have been set fairly low for the G3 economies and there could be potential upside surprises in terms of external demand.

The upcoming FY2011 Budget is likely to focus on investments in key economic infrastructure like housing, transport, education and healthcare.

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