Singapore Q3 GDP Jumps 14.9% On Quarter

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Singapore's gross domestic product expanded by a seasonally adjusted 14.9 percent in the third quarter of 2009 compared to the previous three months, the Ministry of Trade and Industry said on Monday. That was better than analyst expectations for a 14.5 percent quarterly increase following the revised 22.0 percent surge in the second quarter.

On an annual basis, GDP was up 0.8 percent - again beating forecasts for a 0.5 percent gain after the 3.2 percent decline in the previous three months.

"A clear but modest recovery is underway globally, at least for the next three or four quarters," the MTI said in a statement accompanying the data. "One-off factors such as restocking activities and fiscal stimulus measures will continue to support growth in the near term. However, economic activity will probably remain below pre-crisis levels because of the drag on demand in the developed countries posed by higher levels of spare capacity and tight credit conditions."

The manufacturing sector expanded by a seasonally adjusted 34.9 percent on quarter following a spike of 58.5 percent in the previous three months. Construction eased 0.6 percent on quarter, while services producing industries added 9.5 percent.

On year, manufacturing was up 8.3 percent, while construction surged 12.4 percent and services producing industries declined 2.4 percent.

"Growth was driven by the continued expansion of biomedical and electronics manufacturing output, and improvements in the trade-related and tourism sectors of the economy on the back of a gradual stabilization in global economic conditions," the MTI said.

As a result of the data, the MTI is upgrading its economic growth forecast for 2009 to -2.0 to -2.5 percent.

"Singapore's economic prospects in 2010 will be closely tied to the conditions in the external environment," the MTI said. "The manufacturing sector will be supported by inventory cycle adjustments and any uplift in private final demand in the external economies. Trade-dependent sectors are likely to continue to benefit from a gradual resumption in global and regional trade flows in 2010."

(Market News Provided by RTTNews)