Singaporeans cautiously upbeat after 2009 GDP forecast upgraded
By Cheryl Lim, Channel NewsAsia | Posted: 12 October 2009 2207 hrs
SINGAPORE: Singapore has raised its 2009 gross domestic product (GDP) outlook, after the economy grew 0.8 per cent in the three months to September from a year ago.
While the GDP will fall in 2009, the government revised its full-year forecast to a contraction of 2.0 to 2.5 per cent, better than the previous estimate of negative 4.0 to 6.0 per cent growth.
The new GDP forecast indicates Singapore's economy may be in the clear. But many Singaporeans are cautiously optimistic about the next few months.
The Indian Chamber of Commerce and Industry is advising members to gear up in terms of capacity and manpower, and seize the opportunities that will hopefully start emerging by mid-next year.
Meanwhile, the Singapore Malay Chamber of Commerce and Industry says the situation may be improving. But some of its members feel the economy is not recovering as fast as it should.
Small and medium enterprises (SMEs) say they have yet to see the trickle-down effects of the changes.
Inderjit Singh, MP for Ang Mo Kio GRC, said: "Companies are starting to see a pickup in demand and improvement in financial performance, but this is not reflected in increases in salaries so quickly.
"So retailers can expect to see a similar amount of sales or level of sales compared to the past because people don't suddenly feel very rich."
As such, Mr Inderjit expects next quarter's GDP to remain in negative territory.
Despite that, one analyst is predicting a positive outlook for the year-end.
Song Seng Wun, CEO and regional analyst, CIMB-GK Research, said: "The economy shrank quite significantly towards the end of last year. This will mean year-on-year numbers could look quite impressive.
"We could see year-end GDP in the region of two to five percent, depending on how manufacturing performs.
"For the full year, we could end up with a figure that is slightly better than the revised government estimate."
The Monetary Authority of Singapore expects next year's GDP growth to be slower than in previous post-recession periods.
It said inflation is likely to be around zero per cent this year, before rising to one to two per cent in 2010.
- CNA/ir
- wong chee tat :)
By Cheryl Lim, Channel NewsAsia | Posted: 12 October 2009 2207 hrs
SINGAPORE: Singapore has raised its 2009 gross domestic product (GDP) outlook, after the economy grew 0.8 per cent in the three months to September from a year ago.
While the GDP will fall in 2009, the government revised its full-year forecast to a contraction of 2.0 to 2.5 per cent, better than the previous estimate of negative 4.0 to 6.0 per cent growth.
The new GDP forecast indicates Singapore's economy may be in the clear. But many Singaporeans are cautiously optimistic about the next few months.
The Indian Chamber of Commerce and Industry is advising members to gear up in terms of capacity and manpower, and seize the opportunities that will hopefully start emerging by mid-next year.
Meanwhile, the Singapore Malay Chamber of Commerce and Industry says the situation may be improving. But some of its members feel the economy is not recovering as fast as it should.
Small and medium enterprises (SMEs) say they have yet to see the trickle-down effects of the changes.
Inderjit Singh, MP for Ang Mo Kio GRC, said: "Companies are starting to see a pickup in demand and improvement in financial performance, but this is not reflected in increases in salaries so quickly.
"So retailers can expect to see a similar amount of sales or level of sales compared to the past because people don't suddenly feel very rich."
As such, Mr Inderjit expects next quarter's GDP to remain in negative territory.
Despite that, one analyst is predicting a positive outlook for the year-end.
Song Seng Wun, CEO and regional analyst, CIMB-GK Research, said: "The economy shrank quite significantly towards the end of last year. This will mean year-on-year numbers could look quite impressive.
"We could see year-end GDP in the region of two to five percent, depending on how manufacturing performs.
"For the full year, we could end up with a figure that is slightly better than the revised government estimate."
The Monetary Authority of Singapore expects next year's GDP growth to be slower than in previous post-recession periods.
It said inflation is likely to be around zero per cent this year, before rising to one to two per cent in 2010.
- CNA/ir
- wong chee tat :)
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