Singapore's economic activity will be dampened in the near-term due to the heavy exposure of the city-state to global production, trade and financial flows, the Monetary Authority of Singapore said in its Macroeconomic Review on Thursday.

The outlook for the economy over the coming 15 months can be divided into two phases: stalled growth over the next few quarters, followed by a modest recovery, probably sometime in the latter half of 2012, the central bank assessed.

The outlook for the global IT industry is a key determinant of the economic performance over the coming few quarters.

Further, the MAS forecast annual inflation to remain elevated until mid-2012. It will move close to 4 percent in the first half of 2012, before easing to around 2 percent in the second half. For the whole of 2011, inflation is seen around 5 percent, while MAS core inflation will be about 2 percent.

RTTNews