Singapore PM revises 2011 growth outlook range to 5-6pc

SINGAPORE: Singapore's economy is likely to expand by 5-6 percent this year, Prime Minister Lee Hsien Loong said on Monday, indicating the government now expects growth to come in at the lower end of its 5-7 percent forecast.

Lee also said the economy expanded 4.9 percent in the first half of 2011 from a year ago, suggesting second quarter growth should come in around 0.5 percent year-on-year, in line with the government's advance estimate that was released last month.

Singapore will report detailed second quarter gross domestic product (GDP) data on Wednesday that economists polled by Reuters believe will show a quarter-on-quarter contraction similar to last month's flash estimate of a 7.8 percent decline.

With the outlook worsening due to problems in the United States and Europe, several economistS have predicted the trade-dependent Southeast Asian city will plunge into a technical recession in the third quarter.

A technical recession is defined as two consecutive periods of quarter-on-quarter contraction.

Copyright Reuters, 2011