Singapore's GIC sees recovery continuing next year

Sovereign wealth fund the Government of Singapore Investment Corp expects the global economic recovery to extend into 2010 with stronger growth in Asian and Latin American countries that have lower debt levels, Deputy Chairman Tony Tan said on Saturday. "In the short term, the bounce could surprise on the upside," Tan said at a conference for APEC business leaders. Tan said the risk in the medium term was that economies could stagnate while inflation was a longer-term threat. "Over the next one to three years, weak growth and excess capacity will be strongly disinflationary. However, beyond that, over the next 5-10 years, policy errors or political pressure could lead central banks to accommodate higher inflation."