SINGAPORE (Reuters – While inflation is the largest downside risk to Singapore’s economic growth this year, recovery in China as well as a greater global travel resumption and improvement in China are key factors that will help the country-state grow.

According to the Monetary Authority of Singapore (MAS) survey of 24 economists, Singapore is likely to grow 4.8% during the second quarter. It should also expand 3.8% over the entire year. This compares to 4.0% in March.

Inflation rising faster than anticipated, mainly due to higher food and energy prices, was the biggest downside risk in Singapore’s outlook according to the survey. However, stronger Chinese growth supported by macroeconomic policy easing, and economic reopening were identified as the key drivers.

According to it, Singapore’s growth could be supported by the restarting of travel and stronger than expected expansions in manufacturing output.

The survey respondents saw median growth of 5.0% for headline inflation this year, and 3.4% for the core inflation rate — the central bank’s favoured price measure.

They were also higher than the March poll’s figures and more in line the forecast of the central bank.

In order to counter inflation resulting due to disruptions in global supply chains and other factors, MAS has increased monetary policy by three times over six months.