Singapore closely avoids recession

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Singapore’s Prime Minister Lee Hsien Loong

Singapore escaped a technical recession after the economy grew in the fourth quarter of 2012 by 1.8 per cent over the third quarter, the city state’s government said on January 2. The growth was underpinned by a boost from services, it added.

However, the full picture remains gloomy. Prime Minister Lee Hsien Loong said that GDP rose a mere 1.2 per cent for the full year 2012, below the government’s forecast of around 1.5 per cent.

Weakness in the manufacturing sector was a major drag for the economy. Manufacturing shrank by an annualised 10.8 per cent quarter-on-quarter in the October-December period as the European debt crisis and the sluggish US economy dampened global demand for Singapore’s exports, especially electronics.

The prime minister also said GDP was expected to grow just 1.0-3.0 per cent in 2013.

Nomura Securities noted in a market report that manufacturing “remains the weak spot” for Singapore’s trade-driven economy. The city-state’s electronic manufacturers have failed to tap surging demand for smart phones, unlike rivals from South Korea and Taiwan, Nomura said.

Singapore, whose trade is around three times its gross domestic product, last had a recession in 2009. The World Bank expects Singapore to grow 2 per cent in 2013 and recover in 2014 with a growth outlook of 4 per cent.

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Reading Time: 1 minute

Singapore’s Prime Minister Lee Hsien Loong

Singapore escaped a technical recession after the economy grew in the fourth quarter of 2012 by 1.8 per cent over the third quarter, the city state’s government said on January 2. The growth was underpinned by a boost from services, it added.

Reading Time: 1 minute

Singapore’s Prime Minister Lee Hsien Loong

Singapore escaped a technical recession after the economy grew in the fourth quarter of 2012 by 1.8 per cent over the third quarter, the city state’s government said on January 2. The growth was underpinned by a boost from services, it added.

However, the full picture remains gloomy. Prime Minister Lee Hsien Loong said that GDP rose a mere 1.2 per cent for the full year 2012, below the government’s forecast of around 1.5 per cent.

Weakness in the manufacturing sector was a major drag for the economy. Manufacturing shrank by an annualised 10.8 per cent quarter-on-quarter in the October-December period as the European debt crisis and the sluggish US economy dampened global demand for Singapore’s exports, especially electronics.

The prime minister also said GDP was expected to grow just 1.0-3.0 per cent in 2013.

Nomura Securities noted in a market report that manufacturing “remains the weak spot” for Singapore’s trade-driven economy. The city-state’s electronic manufacturers have failed to tap surging demand for smart phones, unlike rivals from South Korea and Taiwan, Nomura said.

Singapore, whose trade is around three times its gross domestic product, last had a recession in 2009. The World Bank expects Singapore to grow 2 per cent in 2013 and recover in 2014 with a growth outlook of 4 per cent.

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