Singapore's Economy Expands 1.5% in Fourth Quarter
By Jerin Mathew | February 22, 2013 3:46 PM EST
Singapore's economy has expanded more than expected in the fourth quarter as the country's manufacturing sector rebounded on higher biomedical and transport engineering output.
The Ministry of Trade and Industry said that the country's gross domestic product (GDP) rose by 1.5 percent year-on-year in the fourth quarter of 2012, beating economists' expectation for a 1.2 percent growth. On a quarter-over-quarter basis, the economy grew by 3.3 percent, compared to 4.6 percent contraction in the third quarter.
The growth in the fourth quarter was primarily due to an annualised 3.1 percent expansion in the manufacturing sector on a quarter-on-quarter basis in comparison to a 16.6 percent contraction in the previous quarter. The sector benefitted from "a rebound in the output of biomedical manufacturing and transport engineering clusters, which more than offset the decline in the output of the electronics cluster," the ministry said.
Singapore's growth in recent years has been hurt by weak manufacturing due to slowdown in the global economy.
In 2012, the economy grew by 1.3 percent compared to a 5.2 percent growth in 2011. The country remains cautiously positive for 2013 and continues to expect a growth rate between 1.0 percent and 3.0 percent, as the global economic growth is likely to remain subdued.
"While downside risks have receded, the global economic outlook is still clouded with uncertainties. In particular, concerns remain over the extent of the fiscal cutback with the budget sequester in the US, as well as the potential flare-up of the debt crisis in the Eurozone," the ministry said.
"Should any of these risks materialise, Singapore's economic growth could come in lower than expected."
Economists at ANZ Research expect Singapore's GDP growth to rebound to 3 percent in 2013, in the upper range of the official forecast.
"Our view is driven by our expectations of cyclical improvements in the US and Chinese economies, assuming no large negative surprises from Europe. Against this global economic backdrop, global trade can recover, leading to better growth in Singapore," the economists said.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Australia's Low Birth Rate May Be Due to Low Confidence in Economy
- Fears Of Infection Spread Prompt Some US Hospitals To Refuse Ebola Patients
- Readers Slam a Book Showing That US Wealth And Power Rests on Slave Labour
- LG G Watch R To Be Available Globally Starting With Europe, North America And Asia Through Retail Sites And Play Store
- Young Teen Fighter Says ISIS Uses Drugs On Suicide Bombers To Get Them Perform The Act
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine
- Russia Slams US 'Double Standards' In The Fight Against ISIS