Friday, January 2, 2009

Singapore lowers economic growth forecast to -2.0%

SINGAPORE: The Singapore economy is expected to grow between -2.0 per cent and 1.0 per cent in 2009. The forecast by the Trade and Industry Ministry (MTI) is lower than the -1.0 per cent to 2.0 per cent range forecast in November 2008.

The weaker prognosis for the Singapore economy in 2009 is based on the sharp contraction seen in the fourth quarter of 2008.

Advance estimates show that Singpore's gross domestic product (GDP) for 2008 should come in at 1.5% compared with 7.7 per cent in 2007.

This figure is lower than MTI’s forecast of around 2.5 per cent in November 2008 and is attributed to a fourth quarter contraction of 2.6 per cent in real terms over the same period in 2007. This follows a decline of 0.3 per cent in the preceding quarter.

On a seasonally adjusted, annualised quarter-on-quarter basis, MTI said real GDP fell by 12.5 per cent, compared to a decline of 5.4 per cent in the third quarter of 2008.

-CNA/sf

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