Singapore PM: Economy Contracts 2.1% In 2009

Sponsored Links

Singapore's economy shrank 2.1% this year, Prime Minister Lee Hsien Loong said in his New Year Message delivered on Thursday. He also said the economy grew 3.5% in the fourth quarter. In 2008, the economy expanded 1.1%.

"Our economy is growing again, and has recovered much of the ground since the recession began last year," Lee said. "Today, the situation looks brighter. Worldwide, economies have stabilized. The US, Japan and Europe are starting to grow again, although problems remain and no one expects an exuberant boom."

The city state's economy expanded 0.6% year-on-year in the third quarter after contracting 3.3% in the second quarter. The Ministry of Trade and Industry forecasts contraction between 2.5% and 2% this year before expanding at a range of 3% and 5% next year. The statistical office is due to release fourth quarter and whole year GDP data on January 4.

The government expects the economy to grow 3% to 5% next year, Lee said. "We continue to track the short term economic trends closely, but we must focus beyond the crisis to secure Singapore's long term position."

He noted that Asia is expected to resume its rapid growth. This will create many new opportunities for Singapore, though in a more competitive landscape. "Singapore must therefore think ahead, and prepare for the post-crisis world. Only then can we carve a role for ourselves amidst the Asian economic giants, and tap on their progress and vibrancy."

Singapore's economy shrank 2.1% this year, Prime Minister Lee Hsien Loong said in his New Year Message delivered on Thursday. He also said the economy grew 3.5% in the fourth quarter. In 2008, the economy expanded 1.1%. (Market News Provided by RTTNews)