The country's gross domestic product is likely to shrink 3.6 percent this year, according to the median forecast of 21 economists in the quarterly survey, the Monetary Authority of Singapore said.

In the previous survey in June, analysts had expected the economy would contract 6.5 percent this year.

In the second quarter, the economy jumped by a seasonally adjusted, annualized rate of 20.7 percent, its first growth in a year. For the full year, the government expects the economy will contract by between 4 percent and 6 percent.

The analysts also boosted their forecasts for 2010 growth to 4.5 percent from 4.2 percent.

Analysts foresee manufacturing declining this year by 7.1 percent, while financial services are expected to drop by 3.0 percent and wholesale and retail trade by 11.7 percent.

Construction, buoyed by a $14 billion government stimulus package announced in January, is the only sector analysts expect will grow this year, with a forecast of 17.3 percent.

Analysts said the economy is likely to shrink 3.0 percent in the third quarter from a year earlier, less than their prediction in June of a 6.6 percent contraction, the central bank said.

The analysts expect the economy will grow 1.9 percent in the fourth quarter.

Non-oil exports, which account for about 60 percent of Singapore's gross domestic product, plummeted in the first half as demand from the U.S., Europe and Japan contracted. Analysts expect non-oil exports to fall 11.5 percent this year.

Analysts now believe consumer prices will be unchanged this year, compared to June's forecast of a 0.5 percent decline, the survey showed. The inflation rate was 6.5 percent last year.

The unemployment rate is expected to jump to 3.8 percent this year from 2.6 percent last year, according to the analyst survey.

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