SINGAPORE, Dec 31: Singapore’s export-driven economy grew by a better-than-expected 5.7 per cent in 2005 and should expand at a previously forecast rate of three to five per cent next year, the prime minister said on Saturday.

Lee Hsien Loong said the city-state posted broad-based growth this year thanks to a sharp rise in manufacturing output and a stronger services sector.

Many businesses, from banks to shipyards, reported better results,Lee said in a New Year’s address released to the media.

Economists said the solid 2005 growth figure could prompt the government to hold an early general election, which is not due till June 2007.

Lee said 2005’s strong growth would lead to the government sharing part of its budget surplus with citizens. In February, the government announced its first budget surplus in three years.

With good growth in 2004 and 2005, I am hopeful that in the budget for fiscal year 2006, we will again have something to share, he said.

The government is due to unveil its budget in late February.

Retail sales were brisk and the property market showed signs of improvement, Lee said, adding that Singapore drew a record 9 million tourists this year.

In October, the government raised its full-year growth forecast to 5 per cent from a range of 3.5 per cent to 4.5 per cent, following strong third-quarter GDP results.

A Reuters poll had forecast 2005 growth at a median 5.5 per cent due to strong manufacturing output, especially in the biomedical and transport engineering sectors.—Reuters