Singapore economy to expand by 5.7 pc this year

Wed 9 March 2011, 11:47 AM By PTI

Singapore, Mar 9 (PTI) Singapore''s economy is set to expand by 5.7 per cent this year, according to private sector economists polled by the city state''s central bank in a new survey released today.

The new 5.7 per cent forecast comes at the top end of the official economic expansion forecast of between 4 per cent and 6 per cent and an upgrade from the 5.1 per cent median forecast in the previous survey released in December.

The Monetary Authority of Singapore''s (MAS) latest survey of professional forecasters shows strong 5.9 per cent growth in the Gross Domestic Product in the first quarter of this year.

However, the economists have sounded caution that consumer price index-based inflation could be as high as 4 per cent this year, compared to the 2.9 per cent forecast in the previous survey.

Last month, the official inflation rate was revised to between 3 per cent and 4 per cent from 2 per cent to 3 per cent, with the government anticipating a further increase in the inflation rate to between 5 per cent and 6 per cent.

Inflation is likely to stand at 5.4 per cent in the first quarter, according to a report by TV channel News Asia today.

The private sector economists forecast 6 per cent economic growth and an inflation rate of 2.8 per cent for next year.

Argentina rescinds plans to halt rising steel prices

Thursday, 03 March 2011

A month ago, the Argentinean government announced that it would force steel prices back to January 21 levels because of continued price hikes and rising inflation in the country.

The government has said the measure-which affected steelmakers, distributors and retailers-was instigated in order to achieve "price stability" in the country but changing market conditions have caused officials to backtrack on the decision.

Tags: raw material, Argentina , South America , steelmaking

Yuan rises on speculation China to permit gain to ease inflation

Sunday, 27 Feb 2011

China yuan gained after sliding recently by the most this month, on speculation the government will permit more appreciation to contain inflation.

Industry data show the yuan advance came as the US Dollar Index traded on ICE futures in New York a gauge of the greenback strength dropped for the first time in three days. Crude oil prices jumped 11% in the past two days in New York on concerns a week long uprising in Libya will disrupt supplies. China imported 54% of the oil it used in 2010.

Mr David Cohen head of Asian forecasting at Action Economics in Singapore said “Beijing sees the usefulness of appreciation as part of its policy to contain inflation, along with higher interest rates and reserve requirement ratios. Appreciation is another way to help contain price pressure from global commodities.”

According to the China Foreign Exchange Trade System the yuan gained 0.09% to 6.5743 per dollar as of 4:30 PM in Shanghai from 6.5803. It fell 0.21 percent retreating from a 17 year high of 6.5654 reached February 21. The central bank set its daily reference rate 0.09% weaker at 6.5828.

China bans hoarding of oil, coal to cool prices

Feb23,2011 By AP

China is banning hoarding of oil, coal and other key commodities, seeking to ensure supplies and cool prices that have surged despite repeated moves to curb inflation.

The government planning agency, in comments published Tuesday, says provinces are forbidden to limit shipments of coal beyond their borders and are required to ensure stable supplies.

Local authorities were ordered to crack down on hoarding, bogus bids meant to drive prices higher, and other illegal practices.

China is trying to cool inflation that surged to a 25-month high in October. Authorities say soaring food prices are mainly to blame, but costs for fuel and other necessities have also jumped, as supplies have run short.

Macroeconomic indicators - China raises banks required reserves again

Monday, 21 Feb 2011
Reuters reported that China central bank would once again raise lenders required reserves by 50 basis points and the second time this year and the eighth official increase since the start of last year.
The People Bank of China said the increase will be effective February 24.
It is Beijing latest step to mop up excess cash in the economy. Annual inflation was 4.9% in January and slower than market expectations, but it still marked an acceleration from 4.6% in December.
(Sourced from Reuters)