Singapore economy seen contracting next year: survey

SINGAPORE: Singapore's recession-hit economy is likely to contract 1.0 percent in 2009, a survey of analysts by the de facto central bank showed Wednesday. The forecast, in a survey carried out last month, marks a sharp downgrade from analysts' previous expectations of 4.6 percent expansion.

For 2008, the analysts revised down their average growth outlook to 2.2 percent, compared with 4.2 percent seen in the last poll in August, the Monetary Authority of Singapore (MAS) said.

"This was a significant downgrade with all key sectors now expected to register lower growth or a contraction," the MAS said. Analysts expect the manufacturing sector will likely shrink 2.9 percent this year, followed by a fall of 4.5 percent next year, the survey showed.

Other key sectors are expected to slow substantially in 2009 from this year, according to the poll of 17 analysts.
Singapore in October became the first Asian economy to enter recession, following two successive quarters of economic contraction.
The official growth forecast for 2008 has been drastically slashed to about 2.5 percent. The city-state's economy grew 7.7 percent in 2007. Next year, the government sees growth ranging between a contraction of 1.0 percent and expansion of 2.0 percent.