Last year, Singapore's economy expanded by 7.7%, led by the construction and financial services industry.  With many new development projects like the Integrated resorts, construction is likely to continue to drive the economy this year.

However, analyst predicts that the economy is going to slow down this year to 5.6%. One of the main cause is due to lower demand for manufactured goods by the US economy, which is Singapore's largest export market.

This new economic forecast is also a downgrade compared to  last December, which was 6.3%.

Growth in financial sector is unlikely to slow down though. Singapore has attracted several top institutions to set up a regional headquarter on the island.

While economic growth is expected to slow down, inflation rate reaches an all time high of 6.6%, a 25 year high. This is likely to cause the central bank to appreciate its currency.