Singapore economy flexes its muscles

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Singapore_Arno Maierbrugger
Singapore’s economy is  back on track again, at least in the first quarter of 2013 (Photo © Arno Maierbrugger)

Singapore posted a surprise upswing in the first quarter of 2013 with the government saying GDP expanded by 1.8 per cent, an improvement from preliminary data that had indicated a 1.4 per cent decline

Officials added they expect growth to pick up modestly for the remainder of the year on stronger external demand, but kept their full-year growth forecast between 1 to 3 per cent

Growth was fueled by the services and construction sectors, reducing pressure on the central bank to ease monetary policy. In particular, the financial sector strengthened as stimulus programmes drove investors into emerging-market stocks, bonds and other investments. Finance and insurance output grew a whopping 50.6 per cent over the previous quarter, Singapore’s Ministry of Trade and Industry said in a news release.

Furthermore, inflation data on May 23 showed a sharp pullback in headline consumer price inflation due to a drop in private vehicle costs, while the government said underlying inflation pressures remained intact.

The small city state, strongly dependent on financial services and  manufacturing exports, has been grappling with slow growth and relatively high inflation in recent years amid weakness in key export markets as well as tighter local restrictions on foreign workers that have raised costs and made it harder for successful firms to expand.

 

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Reading Time: 1 minute

Singapore’s economy is  back on track again, at least in the first quarter of 2013 (Photo © Arno Maierbrugger)

Singapore posted a surprise upswing in the first quarter of 2013 with the government saying GDP expanded by 1.8 per cent, an improvement from preliminary data that had indicated a 1.4 per cent decline

Reading Time: 1 minute

Singapore_Arno Maierbrugger
Singapore’s economy is  back on track again, at least in the first quarter of 2013 (Photo © Arno Maierbrugger)

Singapore posted a surprise upswing in the first quarter of 2013 with the government saying GDP expanded by 1.8 per cent, an improvement from preliminary data that had indicated a 1.4 per cent decline

Officials added they expect growth to pick up modestly for the remainder of the year on stronger external demand, but kept their full-year growth forecast between 1 to 3 per cent

Growth was fueled by the services and construction sectors, reducing pressure on the central bank to ease monetary policy. In particular, the financial sector strengthened as stimulus programmes drove investors into emerging-market stocks, bonds and other investments. Finance and insurance output grew a whopping 50.6 per cent over the previous quarter, Singapore’s Ministry of Trade and Industry said in a news release.

Furthermore, inflation data on May 23 showed a sharp pullback in headline consumer price inflation due to a drop in private vehicle costs, while the government said underlying inflation pressures remained intact.

The small city state, strongly dependent on financial services and  manufacturing exports, has been grappling with slow growth and relatively high inflation in recent years amid weakness in key export markets as well as tighter local restrictions on foreign workers that have raised costs and made it harder for successful firms to expand.

 

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