Construction to offset sluggish manufacturing sector

Singapore - The construction and financial sector will be experiencing a boom in the Singapore economy this year, according to 19 economists polled in the latest quarterly survey by the Monetary Authority of Singapore (MAS).

The construction sector will grow up to 15.9% due to the re-development plans of the Integrated Resort (IR), Sports Hub in Kallang and the Marina Bay Financial Sector, said Emmanuel Ng, OCBC Bank's vice-president for treasury research and strategy in local media.

However, not all sectors will be as bright. The current rise of oil price and the US economic slowdown will reflect the sluggish growth of the manufacturing and hotels and restaurants industry in Singapore.

Ng said between the last survey in December and now, the situation in the US macro picture has deteriorated significantly, especially from the non-farm numbers. As a result, markets have revised down their expectations for US growth profile.

Consumer prices in Singapore are expected to increase to a median 5% on inflation this year compared to 2.1% increase last year. Analysts expect the central bank to remain to its current monetary policy of allowing the Singapore dollar to grow steadily.

The Singapore economy is predicted to develop by between 4% and 6% this year.