Singapore's Ministry of Trade and Industry (MTI) announced on Wednesday that the country's gross domestic product (GDP) growth is likely to be between minus 5.0 percent and minus 2.0 percent in 2009.

The forecast is lower than the previous estimate of a contraction of 2.0 percent to a growth of 1.0 percent on January 2.

The MTI said it expects the economic downturn to continue in 2009, as global economic activity has declined faster and deeper, and the spill-over effects on key sectors of the economy will be stronger.

"Data releases in the past two weeks for retail sales and unemployment in the United States, industrial production in Europe, and exports by Asian economies suggest that external demand conditions have weakened to a greater extent than earlier estimated," said the MTI, adding that these developments will have a major impact on trade-dependent Singapore.

"The electronics purchasing managers' index for Singapore posted a record low in December 2008. The chemicals cluster is expected to weaken with lower oil prices and lower global demand for other manufactured goods. Global trade is expected to contract in 2009, which will affect trade-related sectors such as wholesale and retail trade and transport and storage," said the MTI.

The forecast for consumer price index (CPI) inflation in 2009 were also revised to a minus 1.0 percent to 0 percent. The MTI said it expects upward pressures on domestic retail prices to be eased by global economy downturn.

Singapore's economy registered rapid growth during the past few years, the county's GDP grew 7.7 percent in 2007.

(Xinhua News Agency January 21, 2009)