Combating any potential risk for its nation’s growth, the Central Bank of Singapore increased its inflation projections, putting forecasted growth at a lower end of estimates.
The Singapore CPI, or consumer price index is up to 4 to 5 percent in 2011, an increase from the previous 3 to 4 percent. With the new projected rates, the appreciation of the Singapore dollar is still expected. Accompanying these economic variables is an expected Singapore GDP growth between 5 to 7 percent.
Singapore’s economy contracted last quarter as the effects of a weakened global economy took its toll on the nation’s manufacturing and exports. Looking to avoid a repeat quarter, after Asian had led the global economic growth since 2008, the Singapore Central Bank is staying vigilant to monitor current rates and keep its forecasts up to date.