Wednesday, July 14, 2010

#Update* Singapore GDP to grow 13% to 15% in 2010

SINGAPORE: The city state's economy is projected to grow by a sizzling 13% to 15% in 2010, according to its Ministry of Trade and Industry (MTI), which upgraded the outlook from the earlier forecast of 7.0% to 9.0%.

The MTI said on Wednesday, July 14 the updated growth forecast reflected better economic performance in 1Q of 2010; stronger than expected economic growth in the second quarter; and anticipated slowdown in growth momentum for the rest of the year.

According to a statement posted on its website, the MTI said latest data from the Department of Statistics showed the Singapore economy grew at a stronger pace in 1Q.

The economy expanded by 16.9% on a year-on-year basis, higher than the growth of 15.5% estimated in May. On a seasonally-adjusted quarter-on-quarter annualised basis, the economy grew by 45.9%, compared to an earlier estimate of 38.6 per cent.

"The revision is primarily due to an upward adjustment to the growth estimate for the manufacturing sector (specifically the biomedical manufacturing cluster)," it said.

For 2Q, it said advance estimates indicated the economy has continued to expand strongly. Real GDP is expected to grow by 19.3% from a year ago. On a sequential basis, the economy grew by 26.0% in the second quarter.

"The manufacturing sector is estimated to have grown by 45.5% year-on-year. Growth was driven by a surge in the output of the biomedical manufacturing cluster, as well as a strong expansion in the electronics cluster underpinned by healthy worldwide demand for electronics products.

"The CONSTRUCTION [] sector is estimated to have grown by 13.5% on a year-on-year basis, compared to 10.2% growth in the first quarter of 2010. This was supported by an increase in public sector construction activities," it said.

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