Singapore to maintain growth

SINGAPORE: Singapore’s economic growth accelerated in the first half and will maintain its “momentum” for the rest of the year as higher global demand for electronics fuels exports, the central bank said.  

“The global economy is likely to maintain its resilience,” Goh Chok Tong, the Monetary Authority of Singapore’s chairman, said in the bank’s annual report released yesterday. “Singapore’s economic momentum should be sustainable for the rest of 2006.”  

Demand for music players and mobile phones is fuelling orders at component makers such as Chartered Semiconductor Manufacturing Ltd., supporting expansion in export-driven Asian economies including Singapore. Prime Minister Lee Hsien Loong’s government expects exports of electronics and drugs to help growth in Southeast Asia’s fourth-biggest economy accelerate to as much as 7% this year from 6.4% in 2005.  

Gross domestic product grew 7.5% in the second quarter from a year earlier, following a 10.7% gain in the first, the trade ministry said in a July 10 report.  

“We are expecting a modest slowdown in the momentum in the second half and that is tied to a possible lull in global technology demand,” said Sim Moh Siong, an economist at Citigroup Inc in Singapore. “The inflation story is turning out much better than expected, and should stay within the official range this year.”  

The central bank yesterday reaffirmed the government’s forecasts for 5% to 7% economic growth this year. The Monetary Authority also maintained its forecast for inflation to average between 1% and 2% this year compared with 0.5% in 2005.  

“The prospects for continued economic growth in the quarters ahead appear intact,” Heng Swee Keat, managing director at the Monetary Authority, said at a media briefing yesterday. “While US growth may moderate somewhat, overall external demand is held up by improving conditions in Europe and Japan, as well as continued robust expansion in China and India.” – Bloomberg

For another perspective from The Straits Times, a partner of Asia News Network, click here.

Latest business news from AP-Wire 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

Offshore holdings of China govt bonds hit a record US$337b in July
July palm oil output seen lower at 1.5m tonnes
MMC Corp back in focus after recent privatisation plan
Ringgit falls as daily Covid cases hit new record
Quick take: Asia Media falls 10% on auditors' disclaimer of opinion
Hong Leong Bank, PChem underpin KLCI mild rebound
RHB maintains 'buy' on Magnum
Quick take: DNeX rises in active trade
Trading ideas: DNeX, Solarvest, Impiana Hotels, Lay Hong, Asia Media
F&N to see year-end boost from vaccination rate

Stories You'll Enjoy