S'pore to review growth forecast

S'pore to review growth forecast

SINGAPORE (Reuters): Singapore will have to review its 1998 economic growth forecast of five to seven percent, state television quoted Minister for Trade and Industry Lee Yock Suan as saying yesterday.

Lee said this was to take into account recent developments in South Korea, which last week announced an austerity program as part of a deal with the International Monetary Fund (IMF).

State television said Lee, speaking during a visit to his parliamentary constituency, did not indicate the review would necessarily mean revising the figures.

Singapore made the five- to seven-percent forecast for 1998 gross domestic product growth (GDP) in mid-November, before the full dimensions of South Korea's problems and the IMF program for the country were clear.

Even then, however, some private economists said the forecast might be a bit optimistic.

For 1997, both government and private forecasts see Singapore GDP growth of around seven percent.

The IMF is making a record US$57 billion rescue package available to South Korea, but in exchange is asking it to cut back its economic growth target and also tighten spending. South Korea is one of Singapore's 10 biggest export markets.

Various key trade and investment partners of Singapore closer to home, such as Malaysia and Indonesia, are also tightening their belts and forecasting lower growth rates as a result of economic and currency turmoil in recent months.

Singapore's GDP grew 10.1 percent between the third quarters of 1996 and 1997.