BY SE YOUNG LEE AND P.R. VENKAT

SINGAPORE -- Singapore forecast its economy will rebound next year, expanding by as much as 5% after a deep slump this year, but said the recovery will be sluggish and fraught with risks.

The Ministry of Trade and Industry said the economy will likely grow between 3% and 5% in 2010. It also revised up its headline inflation forecast for 2010 to between 2.5% and 3.5% from 1% to 2% previously. The upgrade highlights incipient price pressures that some economists said could prompt the central bank to tighten policy as early as April.

"We see the recovery there continuing into ...