Singapore’s economy is expected to grow 11.6% in the third quarter from a year earlier, slowing from an 18.8% rise in the second quarter, a central bank survey showed.

The economy will grow 14.9% in 2010, according the median forecast of 20 economists in a central bank survey, at the upper end of an official forecast of 13-15% expansion this year.

 

Singapore faces the risks of an annualised contraction in its economy in the second half due to a global slowdown, but remains on course to be one of the world’s fastest-growing countries for 2010, the government has said. 

 

The Singapore dollar (SGD=D3) is projected to hit 1.363 against the U.S. dollar at the end of September and 1.350 at end-December from 1.401 at end-June, the survey showed.

 

By 0234 GMT, the Singapore dollar was at 1.3546, up 3.74% so far this year.

 

Inflation in the third quarter will be 3.3%, accelerating from 3.1% in the second quarter, but the average inflation for 2010 will be 2.9%, the survey showed.

 

The official forecast range for inflation in 2010 is 2.5-3.5%.  

 

The survey also showed the economy will grow at a pace of 5.0% in 2011 with inflation hitting 2.5%.