SINGAPORE, Nov 21 — Singapore's economy could contract by up to 1 per cent next year as a global slowdown undermines demand for exports, the government said today.
The government expects economic activity of between negative 1 per cent and growth of 2 per cent in 2009, the Trade and Industry Ministry said in a statement. It also cut Singapore's 2008 growth forecast to 2.5 per cent from 3 per cent.
"Singapore's economy is expected to face a broad-based slowdown in 2009," the ministry statement said. "The slowdown in international and regional trade will significantly impact our wholesale trade and the transport and storage sectors. Considerable uncertainty remains as to how deep and long this downturn will last."
The economy shrank 6.8 per cent in the third quarter compared to the previous quarter, more than the 6.3 per cent contraction the government estimated last month, the ministry said. The economy contracted 0.6 per cent in the July-September period compared to the same period a year earlier.
The government cut its inflation forecast for next year to between 1 per cent and 2 per cent from between 2.5 per cent and 3.5 per cent, the ministry said. — AP
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