Economists keep Singapore 2014 GDP growth, core CPI forecasts steady - MAS survey

Economists expect Singapore's economy to grow this year at about the same pace as in 2013, although they believe core inflation will be higher this year, a central bank survey showed on Wednesday.

The median forecast of 23 economists surveyed by the Monetary Authority of Singapore (MAS) was for the city-state's gross domestic product (GDP) to expand 3.8% in 2014, unchanged from the previous survey released in March.

In 2013, the trade-dependent economy grew 3.9%. The latest survey's growth projection for Singapore GDP this year is at the top end of the government's 2014 forecast of 2-4%. In the second quarter, the economy was expected to grow 3.3% compared with a year earlier, higher than the 3.0% April-June expansion projection made three months ago. In January-March, the economy grew 4.9% from a year earlier.

Economists upgraded their 2014 forecasts on manufacturing, construction, as well as wholesale and retail sales. However, non-oil domestic exports were expected to rise slightly less this year than previous forecast, while growth in accommodation and food services was lowered, the latest survey showed. Meanwhile, economists maintained the forecast for core inflation, which excludes changes in the prices of cars and accommodation, at 2.4% for 2014. Last year, core inflation was 1.7%. The headline inflation was seen at 2.2% for the year, slower than the previous projection of 2.8% released in March. In 2013, headline inflation was 2.4%.