Singapore's Economy On Track To Achieve New Growth Targets
Aug. 10, 2006
Singapore's economy is poised to meet its upgraded 2006 growth targets of 6.5% to 7.5% after gross domestic product (GDP) surged beyond expectations in the first half, analysts said Aug. 10. The Ministry of Trade and Industry (MTI) earlier raised growth ...
Singapore's economy is poised to meet its upgraded 2006 growth targets of 6.5% to 7.5% after gross domestic product (GDP) surged beyond expectations in the first half, analysts said Aug. 10.
The Ministry of Trade and Industry (MTI) earlier raised growth targets from 5% to 7% after announcing GDP expanded an annual 8.1% in the second quarter. The targets were announced by Prime Minister Lee Hsien Loong in his National Day speech late Aug. 8 however MTI cautioned the economy still faced downside risks with high oil prices and a U.S. economic slowdown seen as major concerns.
Singapore's manufacturing sector, which accounted for one-third of GDP worth 194 billion Singapore dollars (US$124 billion) in 2005, grew 12.5% in the June quarter from a year earlier, driven by double-digit expansion in its transport engineering and biomedical clusters, the MTI said.
With the pivotal manufacturing sector providing the stimulus, economist Song Seng Wun of CIMB-GK Research sees a slower second half but expects the economy to power on to an 8% expansion in 2006. Song said electronic manufacturers would increase output towards the year-end holiday period while services would gain from the International Monetary Fund and World Bank annual meetings taking place in September.
