The Singapore economy is forecast to expand faster than initially estimated this year on strong manufacturing and construction output, a quarterly survey of professional forecasters published on Wednesday by the Monetary Authority of Singapore said.

The city-state economy is forecast to grow 6.5% this year. This was larger than the median forecast of 5.5% in the previous survey. For the first quarter of 2010, the respondents expect gross domestic product to expand 9.5%, similar to the 9.6% reported in the earlier survey.

In 2010, the manufacturing and construction sectors are projected to grow 9.7% and 8.9%, respectively. Growth in non-oil domestic exports is seen at 12.3%. Private consumption is forecast to rise 5% this year.

The government sees GDP growth of 4.5% to 6.5% this year. According to the estimate of Ministry of Trade and Industry, inflation will come in the range of 2% to 3% for 2010.

The median CPI inflation estimate for 2010 dropped to 2.7% from 2.8% reported in the the December survey. In the first quarter of 2010, inflation is expected to come in at 1.1%. The jobless rate is expected to reach 2% by year-end.

For 2011, the respondents estimate 5.5% economic growth and forecast CPI inflation to reach 2%. The survey results reflect the assessment of 20 participants.

The Singapore economy grew 4% in the fourth quarter 2009, which was lower than the median forecast of 4.7% reported in the December survey. For 2009 as a whole, the economy shrank 2%, which corresponded with the respondents' median forecast for the year.