Singapore economy may contract in second half

SINGAPORE: Singapore’s economy faces the risks of an annualised contraction in the second half of 2010 due to a global slowdown but remains on course to be one of the world’s fastest growing countries.

The government kept its annual growth forecast for 2010 at 13% to 15% – its strongest yearly expansion – as demand for electronics and a surging flow of tourists will offset a fall in biomedical production due to plant maintenance shutdowns and a possible shift in output mix.