SINGAPORE: Singapore economy is expected to grow by 5 to 7 percent for the full year, an upward revision from previous forecast of 4 to 6 percent.
The official forecast by the Ministry of Trade and Industry or MTI came as the short-term external environment is expected to be favourable to the country's growth for the rest of the year.
MTI says this is because the advanced economies remain on a path of modest recovery.
Specifically,
in the US, household consumption will be supported by improvements in
the labour market, while in the EU, growth will be supported by rising
exports and in emerging Asia, growth is also expected to remain healthy.
MTI adds that there are also industry-specific factors supporting growth in the Singapore economy.
Particularly, growth in the manufacturing sector, which will be boosted by new plant operations in the chemicals cluster.
However,
MTI also warns there are several downside risks to growth, including
continued concerns of sovereign debt issues in Europe and further
increases in oil prices coming from the unrest in the Middle East and
North Africa region.
And MTI adds that in Singapore, a tight labour market will also add to business cost pressures.
But overall, the near-term outlook for the Singapore economy remains positive.
The Singapore economy grew by 8.3 per cent in the first quarter of this year.
The year-on-year growth is a lower number compared to growth of 12 per cent in the preceding quarter.
But
on a seasonally-adjusted quarter-on-quarter annualised basis, the
economy expanded by 22.5 per cent, a strong improvement from the growth
of 3.9 per cent in the preceding quarter.
MTI says the increase
in economic activity in the first quarter was broad-based, with growth
led by the manufacturing sector, which expanded 13.1 percent on-year.
On
a seasonally adjusted quarter-on-quarter basis, the sector expanded by
75.4 per cent, reflecting higher production in the biomedical
manufacturing, precision engineering and electronics clusters.
- CNA/de
Looks like top civil servants going to get good bonuses again?
Good bonuses for civil servant.