Singapore Economy

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Recent Economic Developments in Singapore

05 Dec 2012

2011

2012

Q4

Full

Year

Q1

Q2

Q3

3.6

-2.5

9.3

-2.7

4.9

7.8

2.2

1.6

10.1

-0.8

6.0

2.5

0.5

4.6

3.7

0.3

-5.9

-0.9

-3.2

2.0

5.5

4.0

2.0

5.2

6.0

2.1

4.9

0.9

2.0

5.3

2.8

1.9

4.2

3.1

Real Sector

Real GDP Growth, y-o-y %

Real GDP Growth, q-o-q saar %

Index of Industrial Production, y-o-y %

Non-oil Domestic Exports, y-o-y %

Labour Market and Prices

Unemployment Rate, sa, % (Average)

CPI Inflation, y-o-y %

W age Growth, y-o-y %

The Singapore economy contracted in Q3 2012, in line with a downshift in global

economic growth.

Real GDP fell by 5.9% q-o-q saar (quarter-on quarter seasonally-adjusted annualised

rate), reflecting contractions in sectors that are externally-oriented. The decline was

most pronounced in the IT-related industries.

G3 economic growth slowed further, although some signs of stabilisation have

emerged more recently.

There was continued weakening in G3 economic activity in the third quarter, with

sequential growth coming in almost flat. However, stable domestic demand provided

support to the growth of the larger economies in Asia. Although incoming data point

to a near-term stabilisation of key global economic indicators, risks remain.

Significant uncertainty in the global economy will continue to be a drag on

domestic growth.

Against the subdued global backdrop, economic growth in Singapore is forecast to

come in at 1% to 3% in 2013. In particular, sectors reliant on external demand, such

as manufacturing, wholesale trade and transport & storage, are likely to be weak.

Meanwhile, domestic-oriented activities such as construction, education and

healthcare services could provide some support to the Singapore economy.

CPI inflation is expected to come in slightly above 4.5% in 2012 and between

3.5-4.5% in 2013.

CPI-All Items inflation is likely to remain elevated for the rest of 2012 and next year,

underpinned by higher accommodation and private road transport costs.

Excluding...