Singapore economic growth will be affected as the countries due to the aftereffects of the downgrading of the US credit rating by Standard and Poor's and even the other major economies have been besieged under the debt and growth problems.

According to the forecast, the economic growth will be of around 5.3% for the current year though the figures were 6.2% in the preceding year. However, the analyst has been of the view that the expected forecast can be uncertain too and the growth rate may fall further.

In May, the GDP growth forecast by the government was between 5 %and 7 % and it went down to between 5% and 6% in last month, so chances are that it may deteriorate further in the coming months.

Capital Economics Asia economist Vishnu Varathan stated that the reduction in the forecast would rely on the uncertainty which has been prevailing in the market continues and paves the way for more down gradation. The major effect will come out from the level of exports that depends on the trading between the various countries.

Singapore Finance Minister Tharman Shanmugaratnam stated that these global slowdowns may have adverse effect on the economy for short-term but the country has the capability of overcoming the short-term problems.