Singapore, July 21 (IANS): The growth momentum for Singapore's economy is unlikely to weaken in the second half of 2015, the Monetary Authority of Singapore (MAS) said on Tuesday.

Singapore's GDP increased 2.3 percent for the first half of this year on a year-on-year basis, staying in the lower half of Singapore government's 2 to 4 percent forecast for the whole year, reported Xinhua.

Singapore's economy contracted by 4.6 percent in the second quarter at a seasonally adjusted and annualized rate, according to advance estimates released earlier in July.

The Ministry of Trade and Industry and MAS are reviewing their growth forecast for 2015, taking into account the weaker outturn in the first half and support factors in the second half, said MAS managing director Ravi Menon at a press conference.

Global and regional economic recovery remains broadly intact, with the US economy regaining momentum after a weak first quarter, said Ravi Menon, adding that the picture in China is mixed but latest indicators suggest the economy is stabilizing.

On inflation, Ravi Menon said Singapore has experienced negative headline inflation (CPI all-items inflation) for seven months now. However, he said that the city-state is not facing deflation, as underlying cost pressures persist.

MAS said CPI all-items inflation will likely remain negative for the rest of 2015. Inflation for the year is expected to come in at the lower half of the forecast range of minus 0.5 percent to 0.5 percent.