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.