International Enterprise (IE) Singapore expressed its optimism for Singapore’s trade outlook in 2011, reports the Straits Times, and actually increased its trade growth forecast to 8-10% from 6-8%. They gave these primary reasons for the upgrade:

- The International Monetary Fund has also raised its prediction for global economy growth from 4.2% to 4.4%, after seeing better than expected results at the end of 2010;

- Singapore’s domestic demand also grew and consumer spending was up 4.4% in Q4 2010, which in turn would boost exports;

- Rising oil prices and demand for electronics (electronics demand growth is expected to be lower in 2011 than 2010, but given that Asia-Pacific makes up 54% of the global semiconductor market, this will also help Singapore’s exports). Oil is now projected to reach US$90-100 a barrel in response to increased demand and political uncertainty in oil producing regions.