Singapore Economic Growth Forecast At 1.5% For 2012
The Ministry of Trade and Industry of Singapore or MTI sees the economy growing by 1.5 percent this 2012 and from one to 3 percent in 2013, despite generally lower forecasts all over the world owing to the debt crisis in Europe and decreased fiscal spending of the US. In a report released mid-November 2012, the MTI noted the 0.3 percent year-on-year economic growth of Singapore in the third quarter of 2012.
The report also noted, however, the quarter-on-quarter seasonally adjusted annualised contraction of 5.9 percent, owing to significant decreases in manufacturing and wholesale trade sectors. The manufacturing sector declined by 0.8 percent year-on-year, due primarily to a weaker electronics manufacturing sector.
Meanwhile, the construction sector registered an increase of 7.7 percent year-on-year, while the transport and storage sector also grew by 1.4 percent this year compared to last year.
The wholesale and retail trade sector also went down by a marginal 0.3 percent. The finance and insurance sector likewise pegged declines at 2.7 percent year-on-year, while business services moderated its growth to 3.8 percent. The accommodation and food services sector also slowed down its growth to 2.0 percent.
According to the MTI, it expects the economic growth of Singapore to “remain subdued” for the rest of 2012, with the electronics manufacturing cluster expecting adverse effects from a slower external demand. The MTI sees the construction sector to contribute “modest growth” to the economy.
Likewise, the Ministry predicts a continued “sluggish” growth for the next year. “In Asia, while domestic demand is expected to remain resilient, overall growth is likely to be moderate given the weak external demand.” However, the MTI describes its outlook on the economy as “cautiously positive.” It looks to the transport engineering and construction sectors as the economy’s biggest boosters for next year, noting a “healthy pipeline of projects” as well as steady growth in these sectors.