Singapore's economy expanded in the third quarter of this year, recording the second straight expansion proving that the Asian economy is recovering from the worst financial crisis since the great depression, worth mentioning that the government raised its inflation expectations amid increasing housing prices.
Singapore's GDP final reading grew 0.6% in the third quarter from a year earlier compared with a previous contraction by 3.3% in the second quarter and the reading came more than analyst's estimates of 0.5%. On quarterly basis, gross domestic product expanded 14.2% from a preliminary 14.9%, while forecasts referred to 14.0%.
The Trade Ministry said the economy is expected to shrink between 2.0% and 2.5% this year before it expands between 3% and 5% in 2010. Regarding inflation expectations, consumer prices are anticipated to gain between 2.5% and 3.5% amid higher house prices compared with earlier forecasts of 1% to 2.
However, the manufacturing sector that accounts for about quarter of the economy, rebounded 6.6% in the third quarter from a year earlier after it dropped 1.1% in the quarter ended June. The world stimulus plans helped to spur demand for Singapore products, encouraging manufacturers to enhance productivity which is supporting economic recovery.
Singapore exports also had a big role in supporting economic growth, despite non oil domestic exports fell 6.1% in October from a year earlier. The government raised its forecasts for exports as overseas shipments are anticipated to shrink between 10% and 11% less than previous forecasts of a decline by 12%, while exports are anticipated to incline between 7% and 9% during next year.
Since Singapore economy depends on electronics and pharmaceutical exports, it suffered from deeper recession than other countries in the Asian region as demand for electronics and pharmaceutical products declined sharply before global stimulus spending supported demand to pick up. Lim Hng Kiang Singapore's Trade Minister said that the government aims at keeping the manufacturing sector an "integral" part of the economy in order to accelerate economic growth.
The services industry declined 2.2% in the third quarter following a drop by 4.9% in the previous three months, while the construction industry rose 12.8%. Yet, the Central Bank of Singapore expects the building industry to weaken next year after construction projects are completed.
Singapore's GDP final reading grew 0.6% in the third quarter from a year earlier compared with a previous contraction by 3.3% in the second quarter and the reading came more than analyst's estimates of 0.5%. On quarterly basis, gross domestic product expanded 14.2% from a preliminary 14.9%, while forecasts referred to 14.0%.
The Trade Ministry said the economy is expected to shrink between 2.0% and 2.5% this year before it expands between 3% and 5% in 2010. Regarding inflation expectations, consumer prices are anticipated to gain between 2.5% and 3.5% amid higher house prices compared with earlier forecasts of 1% to 2.
However, the manufacturing sector that accounts for about quarter of the economy, rebounded 6.6% in the third quarter from a year earlier after it dropped 1.1% in the quarter ended June. The world stimulus plans helped to spur demand for Singapore products, encouraging manufacturers to enhance productivity which is supporting economic recovery.
Singapore exports also had a big role in supporting economic growth, despite non oil domestic exports fell 6.1% in October from a year earlier. The government raised its forecasts for exports as overseas shipments are anticipated to shrink between 10% and 11% less than previous forecasts of a decline by 12%, while exports are anticipated to incline between 7% and 9% during next year.
Since Singapore economy depends on electronics and pharmaceutical exports, it suffered from deeper recession than other countries in the Asian region as demand for electronics and pharmaceutical products declined sharply before global stimulus spending supported demand to pick up. Lim Hng Kiang Singapore's Trade Minister said that the government aims at keeping the manufacturing sector an "integral" part of the economy in order to accelerate economic growth.
The services industry declined 2.2% in the third quarter following a drop by 4.9% in the previous three months, while the construction industry rose 12.8%. Yet, the Central Bank of Singapore expects the building industry to weaken next year after construction projects are completed.
