Singapore raises full-year GDP forecast to between -2.5% and -2%
By Mok Fei Fei, 938LIVE
Posted: 12 October 2009 0815 hrs
SINGAPORE: Singapore has raised its full-year gross domestic product or GDP forecast for this year. It now expects a contraction of between 2.5 and 2 per cent, a significant improvement from its previous contraction of between 4 and 6 per cent.
According to the advance estimates released by the Trade and Industry Ministry (MTI), third quarter GDP grew by 0.8 per cent on-year. It is the first year-on-year growth since the onset of the recession.
Compared to the previous quarter, third quarter GDP again sustained a double-digit growth of 14.9 per cent. That follows a 22 per cent on-quarter expansion in the previous quarter.
MTI said growth was driven by the continued expansion of biomedical and electronics manufacturing output. Improvements in the trade-related and tourism sectors of the economy on the back of a gradual stabilisation in global economic conditions also aided the recovery.
The manufacturing sector expanded by 35 per cent on a seasonally-adjusted quarter-on-quarter annualised basis, slower than the 59 per cent growth in the previous quarter.
MTI attributed the increase primarily to a continued surge in the production of higher value active pharmaceutical ingredients in the biomedical manufacturing cluster.
The electronics cluster also grew, due to continued restocking activities and uptick in consumer demand for electronic devices. But the construction sector declined by 0.6 per cent, compared to an expansion of 33 per cent in the previous quarter.
Slower construction activity for industrial building projects led to the decline.
The services producing industries also expanded by 9.5 per cent on a seasonally-adjusted quarter-on-quarter annualised basis.
Going forward, MTI expects a clear but modest recovery for the global economy, for which Singapore's economic prospects is closely tied to.
- 938LIVE/so
- wong chee tat :)
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