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Singapore Economic Outlook Positive

Singaporean Prime Minister Lee Hsien Loong on Tuesday said the city-state`s economy would grow to be bigger than earlier predicted but warned the continued increase in oil prices could lead to global recession due to the deteriorating situation in Lebanon. Lee made the announcement on the eve of the 41st anniversary of the nation`s independence and said Singapore`s economy is expected to grow between 6.5 to 7.5 percent this year instead of the previous forecast of 5.0 to 7.0 percent growth.

The Prime Minister noted the impressive 9.45 percent economic growth posted by Singapore in the first half of the 2006. ?After the past few years upgrading and restructuring our economy, Singapore is in a much stronger position than before. Our strategies are working and our economy is growing and creating jobs. "In the first half of this year, growth was 9.4 percent. For the full year, MTI Ministry of Trade and Industry has raised our growth forecast to between 6.5 and 7.5 percent.?

Lee also boasted of 81,500 new jobs, the highest ever recorded in 10 years. In his speech, he said economic outlook worldwide remains strong as the slowdown in the U.S. economy is offset by positive growth in Japan and the slow recovery of several European countries bannered Germany. He adds, ?Southeast Asia is being propelled by economic powerhouse China and India, but Singapore must be vigilant and anticipate developments in the regional and global fronts.?