Tags: AS | Singapore | Economy

Singapore's Economy Grows at Fastest Pace in 35 Years

Wednesday, 14 Apr 2010 10:37 AM


Singapore's economy grew at its fastest rate in at least 35 years in the first three months of 2010, bouncing back from a contraction the previous quarter as manufacturing activity more than doubled.

Gross domestic product grew at an annualized, seasonally adjusted 32.1 percent in the first quarter, the biggest leap since quarterly results began in 1975, the Trade and Industry Ministry said Wednesday.

The economy grew 13.1 percent in the first quarter from the same period a year ago, and the government boosted its 2010 GDP forecast to between 7 percent and 9 percent from between 4.5 percent and 6.5 percent, the ministry said.

"The recovery of the Singapore economy has been stronger than expected and more entrenched since the beginning of this year," the central bank said. "Looking ahead, domestic economic activity is likely to be sustained at a relatively high level."

Singapore's strong GDP numbers suggest demand from the U.S. is recovering and Asia has emerged from last year's recession as a leading driver of global growth.

The city-state was the first Asian country to report first quarter GDP results, while China is scheduled to do so Thursday.

Industrial production jumped 139 percent from the previous quarter, led by electronics and biomedical industries while the service sector grew 11 percent, the ministry said. Singapore's economy relies on trade, finance and tourism.

The preliminary first quarter GDP results were based mostly on data from January and February and may be revised when the government announces complete results next month, the ministry said.

The central bank, known as the Monetary Authority of Singapore, said Wednesday after a twice-a-year policy review that it has shifted its exchange rate target from a zero percent appreciation of the Singapore dollar to a "modest and gradual" appreciation in a bid to dampen inflation.

"The move is fully justified not only by the enormous strength of Q1 GDP but the likely sustainability of the recovery," said Robert Prior-Wandesforde, senior Asia analyst for HSBC. "The Asian recovery has become self-sustaining."

The government also raised its inflation forecast for this year by 0.5 percentage points to between 2.5 percent and 3.5 percent.

"Inflationary pressures are likely to pick up, driven by rising global commodity prices," the bank said after a twice-a-year policy review meeting.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mali's Islamists Withdraw Cease-Fire Pledge

Friday, 04 Jan 2013 13:06 PM

Tens of thousands of Fatah supporters rallied in the Hamas stronghold of Gaza on Friday for the first time since they we . . .

Fmr. CIA Director Hayden: Iran Nuclear Crisis Gets 'Scarier'

Tuesday, 17 Jul 2012 18:11 PM

 . . .

Join Fmr. CIA Director for Special Iran Briefing, Assess the Danger

Friday, 13 Jul 2012 12:27 PM

 . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved