Singapore economy hits the roof, says Singapore Company Incorporation Specialists

July 16, 2010 - PRLog -- Singapore 2010 growth forecast at 13-15%

Singapore’s Ministry of Trade and Industry (MTI) upped its forecast for the country’s economy with a growth of 13 to 15 per cent in Financial Year (FY) 2010, exceeding an earlier growth forecast of 7 to 9 per cent.

The revision of higher forecast figures are the results of strong economic performance in the first quarter of FY2010 coupled with better-than-anticipated economic growth in the second quarter.

Giving advance estimates for FY2010, MTI said that Singapore’s economy grew by 26 per cent. Real GDP is also set to increase to 19.3 per cent compared to the growth in the same period last year. However, higher performance prediction may also indicate that economic growth will slow down for the third and fourth quarter of the year.

A towering production performance in the biomedical manufacturing cluster, as well as a healthy global demand for electronic products amplifying the expansion in the electronics cluster, resulted in a 45.5 per cent year-on-year growth in the manufacturing sector.

Supported by a burgeoning of public sector construction activities, the construction sector also saw a growth boost of 13.5 per cent - up from 10.2 per cent - in the first quarter of FY2010.

High tourist arrivals resulting from the official openings of the Integrated Resorts boosted the tourism-related sectors while robust international trade flows propped up growth in trade-related sectors.

The financial services sector also added to the general economic proliferation with an increase in foreign exchange trading and domestic bank lending activities.

Mr James Nuben, managing director of AsiaBiz Services said that the higher figures is definitely good news for Singapore.

“The higher revised figures show the economic performance exceeding expectations, and reassuring foreign firms and investors in Singapore’s strong and resilient economy. Investors and foreign talent are confident of coming to Singapore and finding jobs, as well as rapidly growing markets in every sector of the economy,” said Mr Nuben.

AsiaBiz Services specialises in Singapore company incorporation as well as work visa applications for foreign corporations and individuals.

MTI reported that the Singapore economy grew by 18.8 per cent year-on-year for the first half of FY 2010, with the first quarter expansion at 16.9 per cent on a year-on-year basis higher than the figure of 15.5 per cent estimated in May.

Based on an annual quarter-on-quarter seasonal adjustments, Singapore’s economy saw an increase to 45.9 per cent. This number is much higher than the earlier estimate of 38.6 per cent because of an upward adjustment in the growth estimate for the biomedical manufacturing cluster in the manufacturing sector.

However, MTI said that this growth spurt is not likely spill over into the second half of FY2010 due to the US and EU’s crawling demand reducing the numbers for manufacturing in Asian economies, thereby moderating industrial activities. Still, a double-dip in recession is doubtful even though there is a moderated global economy recovery.

MTI also added that the sequential growth from current levels of economic activity would be low despite having a healthy year-on-year growth rates in the second half of the year.

The GDP estimate forecasts for the second quarter of FY2010 are mainly calculated from data gather in April and May. These estimations are intended as predictions of the GDP growth in the quarter and will be revised accordingly as more comprehensive data are collected.

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