Singapore’s better-than-expected 5.8% on-month growth in October exports, seasonally adjusted, vs 4.7% contraction in September signals stronger growth in 2010; main challenge for next 12 months will be fighting inflation, Standard Chartered economist Alvin Liew says. 

“While the October export performance reinforces the continued strong contribution towards Singapore’s economy via external demand, the flipside will be that such strong growth rates will be hard to beat in 2011, especially if we expect the growth recovery in the U.S. to be lackluster with unemployment remaining high and consumer sentiment weakening,” Liew says. 

 

Adds, “after the double dose of tightening on October 14, we expect the central bank to keep policy steady in April.”