Singapore to see record 13-15% growth in 2010

Singapore said its economy would grow a stunning 13-15 per cent in 2010 after reporting a record 19.3 per cent year-on-year surge in second quarter output, but analysts said there was little immediate risk of overheating.

The government said exceptionally strong growth in the first half was unlikely to be sustained in the remainder of the year given expected weaker US and European demand for Asian exports, though it played down a risk of another recession.

"The sluggish final demand in the US and EU has moderated industrial activities and lowered expectations for manufacturing output in the Asian economies," the Ministry of Trade and Industry said in a statement.

"The momentum of the global economic recovery has thus moderated, although a double-dip recession remains unlikely at this juncture."

Although coming off a low base, the second quarter number is the highest in the history of the Southeast Asian city-state and far exceeded analyst expectations. If the full-year projection is accurate, it could make Singapore the fastest-growing major emerging market economy in the world this year.

Economists said they did not see any policy response before the central bank's semi-annual review due in October.

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