Singapore: Sing-apore is looking forward to "good" growth this year, Prime Minister Lee Hsien Loong said after the island's economy expanded in the first quarter at the fastest pace since at least 1975.

"I am happy with the very strong first-quarter growth. It reflects a rebound from the downturn last year, which is broad-based and robust," Lee said in an e-mailed response to questions from Bloomberg News late on Wednesday. "Singapore is looking forward to good growth in 2010."

Revaluation

Singapore raised its 2010 growth forecast for the second time this year yesterday as government estimates showed the $182 billion (Dh668 billion) economy grew an annualised 32.1 per cent in the first quarter from the previous three months. The central bank said it would undertake a one-time revaluation and seek a gradual and modest appreciation of the currency, joining other Asian economies in tightening monetary policy.

The Singapore dollar rose 0.2 per cent against the US currency to S$1.3744 (Dh3.66) at 2.32pm yesterday, after rising 1.1 per cent, the most since May 2009.

Stocks climbed 0.2 per cent, extending Wednesday's rally that took the benchmark index to above 3,000 for the first time since 2008.

Singapore's gross domestic product will increase 7 per cent to 9 per cent in 2010, the trade ministry said yesterday, compared with a previous prediction for growth of as much as 6.5 per cent. Economists at Goldman Sachs, Citigroup and Standard Chartered were among those who raised their forecasts for Singapore after the government revision.

"Even if we assume the economy remains stagnant in the coming quarters, the economy could still post a strong 8.6 per cent expansion," said Irvin Seah, an economist at DBS Bank in Singapore who raised his growth forecast to 9 per cent this year. "The electronics industry, riding on the current cyclical upswing in global electronics demand, should provide some solid backing to the overall manufacturing sector."

Singapore's retail sales rose the most in 17 months in February as consumers increased spending during the Lunar New Year festival and the opening of the country's first casino boosted tourism arrivals.