what? no crumbs for Batam?

Singapore on Track for Record Economic Growth<..." /> what? no crumbs for Batam?

Singapore on Track for Record Economic Growth<...">
what? no crumbs for Batam?

Singapore on Track for Record Economic Growth

by Nopporn Wong-Anan

Singapore. After reporting a record 19.3 percent year-on-year surge in second-quarter output, Singapore said its economy would grow a stunning 13 percent to 15 percent in 2010, but analysts dismissed any immediate risk of overheating.

The government said exceptionally strong growth in the first half was unlikely to be sustained in the remainder of the year given expected weaker US and European demand for Asian exports, though it played down a risk of another recession.

“The sluggish final demand in the US and EU has moderated industrial activities and lowered expectations for manufacturing output in the Asian economies,” the Ministry of Trade and Industry said in a statement.

“The momentum of the global economic recovery has thus moderated, although a double-dip recession remains unlikely at this juncture.”

Although coming off a low base, the second-quarter number is the highest in the history of the city-state and far exceeded analyst expectations.

If the full-year projection is accurate, it could make Singapore the fastest-growing major emerging-market economy in the world this year.

Economists said they did not see any policy response before the central bank’s semiannual review due in October.

“I don’t think there’s a need for an immediate adjustment,” said Dave Cohen from Action Economics. “Inflation is under control, the Singapore dollar is already on a rising trend and commodity prices are moderating, which will help keep a cap on price pressures.”

“Singapore’s growth will clearly surpass China’s, and may be the fastest in the world. But I won’t put too much emphasis on that,” he added. “Singapore is rebounding from a contraction whereas China continued to grow at an 8-9 percent pace last year.”

Financial markets showed muted reaction to the buoyant data with the Singapore dollar a touch firmer and stocks up 0.8 percent, mainly in response to a strong Wall Street close.

Singapore, reliant on manufacturing and exports, saw its economy shrink 1.3 percent last year in the midst of the global financial crisis.

Wednesday’s advance estimates showed second-quarter output surged 26.0 percent on an annualized, seasonally adjusted basis, with especially strong growth in manufacturing, particularly the biomedical cluster.

The government also said that June non-oil domestic exports surged 28.7 percent year-on-year and raised its full-year exports growth forecast to 17 percent to 19 percent from an earlier 15 percent to 17 percent.

Despite fiscal austerity plans announced by several European nations, exports to the EU surged 75.1 percent over the previous year, although shipments to the United States remained static.

“It looks like we are at the peak of the cycle,” Citigroup economist Kit Wei Sheng said. “When you look at the numbers, it is flattening out. It is not a slump, not a double-dip, but a slowdown in growth.”


Reuters
<span style="font-style: italic">what? no crumbs for Batam?</span><br /> <br /> <span style="font-size: 14pt"><span style="font-weight: bold">Singapore on Track for Record Economic Growth</span></span><br /> <br /> by Nopporn Wong-Anan<br /> <br /> Singapore. After reporting a record 19.3 percent year-on-year surge in second-quarter output, Singapore said its economy would grow a stunning 13 percent to 15 percent in 2010, but analysts dismissed any immediate risk of overheating.<br /> <br /> The government said exceptionally strong growth in the first half was unlikely to be sustained in the remainder of the year given expected weaker US and European demand for Asian exports, though it played down a risk of another recession.<br /> <br /> &ldquo;The sluggish final demand in the US and EU has moderated industrial activities and lowered expectations for manufacturing output in the Asian economies,&rdquo; the Ministry of Trade and Industry said in a statement.<br /> <br /> &ldquo;The momentum of the global economic recovery has thus moderated, although a double-dip recession remains unlikely at this juncture.&rdquo;<br /> <br /> Although coming off a low base, the second-quarter number is the highest in the history of the city-state and far exceeded analyst expectations.<br /> <br /> If the full-year projection is accurate, it could make Singapore the fastest-growing major emerging-market economy in the world this year.<br /> <br /> Economists said they did not see any policy response before the central bank&rsquo;s semiannual review due in October.<br /> <br /> &ldquo;I don&rsquo;t think there&rsquo;s a need for an immediate adjustment,&rdquo; said Dave Cohen from Action Economics. &ldquo;Inflation is under control, the Singapore dollar is already on a rising trend and commodity prices are moderating, which will help keep a cap on price pressures.&rdquo;<br /> <br /> &ldquo;Singapore&rsquo;s growth will clearly surpass China&rsquo;s, and may be the fastest in the world. But I won&rsquo;t put too much emphasis on that,&rdquo; he added. &ldquo;Singapore is rebounding from a contraction whereas China continued to grow at an 8-9 percent pace last year.&rdquo;<br /> <br /> Financial markets showed muted reaction to the buoyant data with the Singapore dollar a touch firmer and stocks up 0.8 percent, mainly in response to a strong Wall Street close.<br /> <br /> Singapore, reliant on manufacturing and exports, saw its economy shrink 1.3 percent last year in the midst of the global financial crisis.<br /> <br /> Wednesday&rsquo;s advance estimates showed second-quarter output surged 26.0 percent on an annualized, seasonally adjusted basis, with especially strong growth in manufacturing, particularly the biomedical cluster.<br /> <br /> The government also said that June non-oil domestic exports surged 28.7 percent year-on-year and raised its full-year exports growth forecast to 17 percent to 19 percent from an earlier 15 percent to 17 percent.<br /> <br /> Despite fiscal austerity plans announced by several European nations, exports to the EU surged 75.1 percent over the previous year, although shipments to the United States remained static.<br /> <br /> &ldquo;It looks like we are at the peak of the cycle,&rdquo; Citigroup economist Kit Wei Sheng said. &ldquo;When you look at the numbers, it is flattening out. It is not a slump, not a double-dip, but a slowdown in growth.&rdquo;<br /> <br /> <br /> Reuters
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