Singapore economy poised to grow 15 percent in 2010: govt

Friday, 19 November 2010 02:20 - - {{hitsCtrl.values.hits}}

SINGAPORE (AFP) -Singapore’s economy is likely to grow 15 percent this year but expansion will moderate to 4.0-6.0 percent in 2011, the government said Thursday following the release of third-quarter data.

The government earlier predicted 13-15 percent gross domestic product (GDP) growth in 2010, coming off a 1.3 percent contraction in 2009 during the global slowdown, but has now firmed it up to the upper end of the band.

The Ministry of Trade and Industry (MTI) said the biomedical and financial sectors would drive growth in the fourth quarter with manufacturing expansion slowing down.

“Taking into account these factors, MTI expects the Singapore economy to expand by around 15.0 percent in 2010,” it said.

GDP growth in the third quarter from a year ago moderated to 10.6 percent, compared to record 19.5 percent growth in the second quarter.

Manufacturing growth fell to 14.3 percent in the third quarter from 46.1 percent in the previous three months.

Officials and economists had earlier said that double-digit growth this year was exceptional since the economy was coming off a recession, and growth would moderate to more sustainable levels in 2011.

Singapore would continue to benefit from the advanced economies’ gradual recovery and Asia’s strong domestic demand but Europe’s sovereign debt woes and the tepid US economy remained risks to growth next year, the ministry said.