Hemscott
23 May 2008
SINGAPORE (Thomson Financial) - Singapore's economy grew at a slower than estimated pace in the first quarter as exports dwindled amid weakening global demand and economists expect the slowdown to continue as runaway inflation bites.
Annual inflation in the city-state soared more than expected to a 26-year high of 7.5 percent last month due to higher oil and food prices, prompting the government on Friday to increase its full-year inflation forecast to 5 to 6 percent from 4.5 to 5.5 percent.
'Higher inflation is definitely eroding the purchasing power of consumers ... compounding the growth pressures that we are currently facing,' said economist Kit Wei Zhen at Citigroup.
>>>> More
