Singapore declares its recession over
Agence France-Presse, 19 November 2009
Singapore on Thursday declared a severe recession over as data showed its economy grew for the second straight quarter in the three months to September.
Official data released Thursday showed gross domestic product (GDP) expanded 14.2 percent in the July-September period on a quarter-on-quarter annualised basis following a 21.7 percent surge in the previous quarter.
“Effectively, the recession in Singapore is over,” Ravi Menon, permanent secretary with the Ministry of Trade and Industry (MTI), said at a media briefing.
“Economies around the world are now turning the corner… Singapore has benefited from these global and regional trends.”
Year-on-year, Singapore’s GDP grew 0.6 percent in the third quarter compared with a 3.3 percent contraction in the April-June period, the MTI said in its third-quarter economic survey.
The 0.6 percent annual growth in the July-September period was the economy’s first positive showing since the third quarter of 2008, when the city-state slid into a recession.
Growth in the third quarter was powered by the key manufacturing sector, which posted expansion of 26.6 percent on a quarterly basis following a 58.5 percent surge in the previous quarter, the ministry said.
Other sectors also turned in a positive display including the wholesale and retail industries, which grew 10.8 percent after a 7.9 percent increase in the second quarter, it said.
Wholesale and retail make up two-thirds of the economy.
In its outlook for 2010, the ministry forecasted economic growth of 3.0-5.0 percent while maintaining its existing projection of a contraction of 2.0-2.5 percent this year.
“Global economic developments suggest that the recession has ended in most countries,” the ministry said in a statement accompanying the quarterly survey.
“Singapore’s economic outlook for 2010 will be closely linked to global conditions.”
The city-state’s trade-reliant economy was the first in Asia to sink into a recession last year as the global downturn hit demand for its exports, especially from the United States.
Its worst recession since gaining independence in 1965 took place in 2001 when GDP shrank 2.4 percent.
The US economy’s recovery from its recession will be key to Singapore’s growth prospects, the ministry said.
“The key economy to watch is the US. We see the recovery there continuing into 2010 but at a sluggish pace,” said Menon.
“We do not expect a collapse in US private demand, however… but private demand will nonetheless be sluggish,” he said.
The US economy, a major market for Asia’s export-led economies including Singapore, has emerged from a prolonged recession that started in late 2007 as its GDP grew 3.5 percent in the July-September period.
It was the world’s largest economy’s first economic expansion since the second quarter of 2008 but analysts have cautioned the recovery remained fragile. – AFP
Republished from AFP
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Political SalesMaN on Thu, 19th Nov 2009 9:13 pm
Really! Oh no is a technical rebound. The cycle of the crisis is short & short, earlier & earlier. Don’t be bluff.In the early stage the big giant China, India, China shut it door for 35years, Singapore benefit fron this. and the rest of medium size country like Vietnam, North Korean, Liao, Cambodia our neighbour Indonesia, are coming up to compete.With another 20Billion of people emerge to compete in job or business.massive economic correction is faster & faster.so the next cycle will be within 7years from now or mightbe tommorow. It is unpredicable.
cy on Thu, 19th Nov 2009 9:20 pm
yes recession may be over, but with FED creating another bubble, expect another downturn in a few year’s time
fair and square on Thu, 19th Nov 2009 10:44 pm
oh? really?
guess officials are still living in dream castles.
htis is so easy but i think the “depression”,workers’ depression that is,is hardly over,or has it?! so damn clever!!!guess it’s Christmas and bonuses are just round the corner for
the “heartless” local ‘BOSSES’.IF YOU WANT YOUR BIG FAT BONUSES,NO NEED TO FIND EXCUSES…WE HAVE HAD ENOUGH,JUST DO IT!like nike say so sbruptly.
gdp again? oh,come on it’s really cliche.
per capita income high? for whom?many locals don’t even have
a mothly pay packet to open!!!
MAKE SURE YOU CREATE JOBS FOR THE VOTERS,THEY DID NOT VOTE YOU
TO GET THEM OUT OF JOBS,YOU KNOW?
I REST MY CASE,ASIF “WE” EVER GOT A CASE AT ALL?!!!
Recession over or election coming on Thu, 19th Nov 2009 10:46 pm
Biggest question is – is this durable or election talking up of the economy?
MITI statement says ….Year-on-year, Singapore’s GDP grew 0.6 percent in the third quarter compared with a 3.3 percent contraction in the April-June period, the MITI said in its third quarter economic survey….
And they forecast 3% to 5% growth for 2010 – suggesting that 2009 economic downturn was an abberation?
Recent figures has it that non-oil domestic export were up 2.9% in September but collapsed more than 12% in October. These are pulbished in MSM only 2 days ago. And the economy was helped by $20.4 billion of stimulus spending or roughly 8% of GDP.
Without this stimulus spending next year, if our economy can grow 3% to 5% next year, the world outside Singapore must be booming. THE NUMBERS DON’T ADD UP. That is not the scenario MITI forecast for US or EU. MITI forecast of no recession for Singapore before the current downturn proved wildly optimistic.
My take of MITI statement of recession over and strong positive forecast for 2010 is simply “talking up the economy” -ELECTION IS VERY SOON.
Deen Yusoff on Fri, 20th Nov 2009 12:34 am
Not sure if recession is really over but I believe it is getting better. But as many speculated, another bubble is probably gonna burst in a matter of time. It is unavoidable whether the Govt is good or bad.
Anyway, I would really like to believe that majority of Singapore is suffering but looking at the amount of young adults spending their money away at Clarke Quay every weekend, the number of people that are going on holidays from Singapore, and the number of people carrying iPhones on the street, probably Singapore is not doing too bad.
Students like me don’t really feel the difference as long as we can manage our allowance the same way every month. Unless we can’t get tuition jobs anymore, no student loans given out or our families are in the worst shape of all times, we would not be complaining.
Will love the Govt even more if they decide to “help” us students with Fresh Grads monetary package while we look for a job.
Won’t hurt if Singapore is doing that well right?
Also, if the Govt say that recession is totally over for Singapore, I am expecting a damn good pay and should be looking at a good job market for SINGAPOREANS when I graduate in May. Else I’ll agree that this declaration is pure bullshit. And if they are going to get big bonuses for themselves, they better give big bonuses to every single individual that is working in the public sector as well in the same proportions. Then that will be fair.
Deen Yusoff
deoxin on Fri, 20th Nov 2009 5:30 pm
i believe that recession is over, reason: i kinda “feel” that there’re lesser people here bashing the gahmen.
=D
for singapore on Fri, 20th Nov 2009 6:22 pm
@deoxin
since when did folks here bash the gahmen?
we aren’t that shallow nor “hollow”.
folks here are merely providing some pointers in
wisdom,it’S that plain and simple.
if “recess-sion” over you,i haven’t seen your suck-up comments
for a few good seesions?
MickeyMouse on Fri, 20th Nov 2009 7:14 pm
PAP SUX!!! Recession or not, vote against PAP for the sake of your freedom and your money. And if you don’t want Singapore to be swamped with foreign trash.
Yusoff, looks like you are still in disneyland. I just graduated last year and I could not find a job in my related field (life sciences) of study cos you know what? the employers chose to hire foreign graduates from an unrelated field (engineering) who submit resumes asking for $2000/mth. You should trying surviving without pocket money + paying your tuition fees + contributing to your household at the same time. It’s very different from what you are experiencing now. And good luck in finding your dream ideal high-paying job that no foreign trash will spoil market for.
cy on Fri, 20th Nov 2009 11:37 pm
It’s a recession when your neighbor loses his job; it’s a depression when you lose yours. Harry S Truman
Deen Yusoff on Sat, 21st Nov 2009 4:02 am
Well, I guess you are right MickyMouse. I am still in “Disneyland”.
I wish I could stay in school with all my expenditures covered for, forever. But I will be out there to look for a job soon too. Competing with the “foreign talent” as well as trying to pay my own bills soon. But that is life. And I need that luck you have wished me. Thanks. 
I have a lot to say on this matter actually. Like for example I don’t only have to compete with foreign talent, I have to also look for a job that will accept me for not being bilingual in Chinese(Mandarin) or for a job that doesn’t require me to be a Chinese.
So I blogged my own thoughts on this as a reply to your comment.
My Reply.
Take care,
Deen Yusoff
Dettol your brain please on Sat, 21st Nov 2009 9:35 am
deoxin on Fri, 20th Nov 2009 5:30 pm
Recession over??….because in your moronic thoughts and words here…”there’re lesser people here bashing the gahmen…”
Didn’t you read this line in yesterday print read on economy…..MTI does not expect the recovery to be smooth sailing OR FOR GROWTH TO REBOUND TO PRE-CRISIS LEVEL?
If it won’t recover to 2008 level by year end 2010, what do you call this “recovery” ( aka in your mind recession over)?
A DEAD CAT BOUNCE or little fart of economic gas in your brain?
kikoman on Sun, 22nd Nov 2009 1:36 am
‘Singapore declares its recession over’ oh yes !! so are Singapore in to world cup finalisist,the so called ’swiss standard’ of living and the list goes on……………………..
Patty Boy on Wed, 2nd Dec 2009 3:40 pm
There are two problems I have with the posters on this site. The quality of comments here is really low. I get the impression that the people on this site and similar ones are typically ignorant. Maybe Singaporeans like to flaunt their ignorance.
For example -
“20Billion of people emerge to compete” There are less than 20 billion people in the world. For god sake, the world has less than 7 billion people. It wouldn’t make sense even if there is a typo.
Also, people here bash the government for their personal problems. I am no PAP supporter but bashing the government without proper thoughts are useless and counter productive. It gives our younger generation the impression that any opposition and their supporter are just a bunch losers nutcase.
Yes, the writing is terrible too.