Singapore GDP grows by 14.9%
By P R Venkat from Wall Street Journal
SINGAPORE — Singapore’s economy continued to expand in the third quarter, boosting the government’s expectations for a milder contraction for the full year than previously estimated.
Growth in gross domestic product for the three months to Sept. 30 on a seasonally adjusted and annualized basis rose 14.9%, lower than a revised 22.0% increase in the second quarter, according to advance estimates released Monday by the Ministry of Trade and Industry.
The median forecast from a Dow Jones Newswires poll of 10 economists tipped third-quarter GDP to grow 14.8% from the previous three months.
Compared with the year-earlier quarter, the economy is estimated to have expanded 0.8%, higher than a 0.5% increase tipped in the poll. GDP fell 3.2% from a year earlier in the second quarter.
This is the first on-year increase since the second quarter of 2008.
“A clear but modest recovery is underway globally, at least for the next three or four quarters,” MTI said in a statement.
The government now expects the city-state’s economy to post a milder contraction with the fall coming in between 2.5% and 2.0%, narrower than a previous forecast of a 4%-6% decline.
The revision was due to an upward revision in the second-quarter GDP and a spike in biomedical manufacturing output.
Output in the manufacturing sector rose 8.3% from a year earlier compared with 1.1% contraction in the previous quarter, driven by a surge in pharmaceutical production.
The services sector shrank 2.4%, while the construction sector expanded 12.4%.
“A sustained recovery in private consumption and investment in the developed economies is needed to support growth momentum into the second half of 2010,” MTI said.
It said that uncertainties over the pace of the withdrawal of monetary and fiscal stimulus measures pose an additional risk.
“While these factors may dampen growth in the second half of 2010 and result in an uneven recovery, the likelihood of a return to recessionary conditions is low in the absence of further financial shocks,” MTI said. – WSJ
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silenceisgolden on Tue, 13th Oct 2009 12:15 am
Congratulation to Sg for a good showing with 14.9%. Due to TR’s readers constant threat of voting for the opposition, the MIW reacts by doing something positive to shows you that their skill matches their high paying job. So think twice before doing something so stupid as to vote in the opposition.
Peace and stability assured on Tue, 13th Oct 2009 10:42 am
We can always get in many ordinary foreigners (to reduce wage costs) to stimulate business and growth. And make them PRs to uphold the value of our HDB or private property prices (for the richer PRs).
We can also get super rich foreigners to come here to stimulate our financial services and property sector or patronise our upcoming casinos.
So there are so many options when there is the whole world to source for talents and money.
As long as political stability is assured and people are peace loving and continue to be so for a long time and which I believe we will.
I love my country on Tue, 13th Oct 2009 10:55 am
More excuses for Govt to set up more ERP, 10% GST, higher electricity tariffs, etc
Land lords to up rents
HDB to sell their units at higher price (its 30% of your gross income for next 30 years of your life)
Everything, except our wallets, will go up and up
Anonymous on Tue, 13th Oct 2009 11:22 am
….Growth in gross domestic product for the three months to Sept. 30 on a seasonally adjusted and annualized basis rose 14.9%, lower than a revised 22.0% increase in the second quarter……
The much boasted “recovery” has fallen off over the other side of the cliff. The numbers this qtr is DEMONSTRATBLY weaker than the previous June Qtr. In both cases, the “stimulus” spending of over $20 billion is the sole factor lifting the GDP from its abysmal depth. As the effects of this spending wears off at year end and a much reduced Job Credit scheme, the GDP figure will fall further in the final qtr compared to the last two.
Without the stimulus spending in 2010, the economy will tank in 2010. Why? The stimulus spending of $20 billion should roughly add to 8% gain in GDP. That means that next year will be smaller by same extent of GDP artificial lift in 2009 UNLESS THE UNCERTAIN WORLD ECONOMY UPTURN to generate a 8% increase in our GDP. It is impossible. In good times, our economy cannot even grow at 5% without Jurong Island reclamation spending and the IR resort construction.
It is tough time in 2010, maybe even slightly lower than 2009 GDP figure.
qussl3 on Wed, 14th Oct 2009 12:28 am
We really should stop this GDP rubbish, even the per capita GDP numbers arent a true reflection of overall prosperity for a nations citizens, let alone an economy structured like singapore.
As ridiculous as it sounds Sarkozy and the Bhutanese king/prince are on the right track wanting to include qualitative measures like “happiness” to account for true economic prosperity for its citizens.
GDP doesnt mean anything to individual workers when wages are stagnant/declining after adjusting for (our ridiculously unrealistic) low inflation.