The figures are based on the median forecast of 19 economists polled by the Monetary Authority of Singapore.

The growth forecast for 2006 is higher than the 5 percent projection made in the December survey after the economy grew at a faster-than-expected 8.7 percent in the last quarter, the central bank said.

The latest forecast, based on expectations that global demand for key electronics will remain strong this year, is also at the upper end of the government's official forecast range of 4 percent to 6 percent.

The survey predicted that the economy will grow 7.5 percent in the first quarter before easing to 6.5 percent in the second quarter, with growth to moderate further in the second half amid expectations for a global economic slowdown.

Economists also expect a pickup in inflation this year to 1.5 percent from 0.5 percent last year as private consumption improves and the unemployment rate stays low at 2.5 percent, the survey said. First-quarter inflation is likely to be 1.6 percent.

The survey showed that non-oil domestic exports are likely to grow at a healthy 10 percent in 2006. Strong exports will also support the manufacturing sector, boosting output growth to 8.5 percent.

Exports are expected to grow 15 percent in the first quarter on strong electronics demand.

The central bank said forecasters are "fairly optimistic" about the near-term prospects for the Singapore economy.

Risks facing the city-state's economy include higher oil prices, a flu pandemic, weaker electronics growth and a slowdown in the U.S. economy, a major market for Singaporean exports, the survey said.

In 2007, gross domestic product growth would likely be 5.1 percent, the survey showed.

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