Singapore Expects Modest Growth Amidst Global Financial Crunch
The Singapore government is expecting a modest growth of 1 to 3 percent this year in the wake of the ongoing European financial crisis that experts deem might drag the global economy into a deep recession.
The projections were based on the report released by the Monetary Authority of Singapore (MAS), Singapore’s central bank and leading financial institution. Economic analysts also echo the positive forecast which the government has maintained at 3 percent during the previous months.
Singapore is enjoying a rebound in its tourism, IT and real estate sectors during the first quarter of 2012. The GDP growth also made a huge leap during the said period at 10% quarter-on-quarter. At the same time, non-manufacturing related clusters also performed well because of a growing demand in the region.
More and more tourists are also visiting the country reaching 3.6 million visitors last year. The whopping figure was due to the influx of tourists from neighboring country Indonesia, and mainland China. The tourist arrivals have helped maintain hotel occupancy rates throughout the year which grew to 88.5% this year from 86.5% in 2011.
The economy has also enjoyed the spillover benefits of the said tourism boost in its retail and food and beverage sector.
The real estate sector, meanwhile, is buoyed by an increase in sales of mature flats during the second quarter of 2012.
Finally, Singapore has maintained a conservative approach in allocating its investments and encourages private institutions to do the same. This has prevented the country from making the same mistakes as economic giants like the US and the Eurozone. It has also protected the country from any major economic instability.
The rosy forecasts came despite the growing uncertainty from the Eurozone debt crisis troubling Greece, Italy and Spain. A slowed GDP growth in China and India, as well as a possible recession in the United States, are also threatening the global economy.