SINGAPORE, Dec 9 (Reuters) - The Singapore dollar is expected to strengthen to 1.350 against the U.S. dollar by the end of next year, compared with a forecast 1.382 by the end of 2009, a central bank survey showed on Wednesday.
Singapore's economy is forecast to grow 5.5 percent next year, versus expectations of a 2.0 percent contraction this year, as the trade-dependent city-state rebounds from its worst recession, the survey of 20 private economists said.
Economists have lifted their expectations for growth and inflation next year, which may spur the central bank to tighten monetary policy at its next review meeting in April, by allowing its currency to gradually strengthen.
The Singapore dollar, which the central bank uses as its main policy tool by managing its exchange rate against a secret trade-weighted basket of currencies, was trading at 1.3932 against the U.S. dollar by 0400 GMT, after having gained more than 3 percent this year.
The survey showed the consumer price index rising 2.8 percent in 2010, after a forecast 0.3 percent increase this year, in line with the government's 2010 forecast of a rise in the consumer price index of between 2.5 percent to 3.5 percent.
Gross domestic product was seen growing 4.7 percent in the fourth quarter from a year ago, the survey said, versus actual 0.6 percent annual growth in the third quarter when the economy returned to growth after three quarters of annual contractions.
The government has forecast 2010 GDP growth of between 3 to 5 percent. (Reporting by Neil Chatterjee; Editing by Jan Dahinten)