Singapore (Agencies): The Ministry of Trade and Industry (MTI) of Singapore on Thursday forecast the economy will grow 4-6 per cent this year.

Singapore's gross domestic product grew by 14.5 per cent last year, recovering from a decline of 0.8 per cent in the recession hit 2009, the MTI said.

Trade growth estimates for this year have been revised upwards to 8-10 per cent from the previous forecast of 6-8 per cent, said the state's trade promotion agency International Enterprises Singapore.

Last year's trade rose by 21 per cent to SGD 902 billion, recovering from the 19 per cent decline seen in 2009.

Both economic and trade growths are based on positive economic growths and consumer demand in the city state's export markets, especially Europe and China.

The steady pace of growth in the advanced economies is expected to support Singapore's manufacturing activities.

The MTI has also revised upward inflation rate forecast for Singapore to 3-4 per cent from earlier prediction of 2-3 per cent.

The Ministry gave a precautionary note about the debt concerns in some European economies, inflationary pressure in Asia and tight labour supply in Singapore.