Singapore: Singapore expects its economy to soar 15 per cent this year after a record expansion in the second quarter that suggests Asia's recovery from the global recession remains on track.
Gross domestic product for April through June grew 19.3 per cent from a year earlier when the economy was shrinking because of the global recession, the Trade and Industry Ministry said yesterday. The growth was the fastest since the government began releasing quarterly GDP figures in 1975.
The ministry raised its forecast for the city-state's economic growth this year to a range of 13 per cent to 15 per cent from the previous forecast of 7 per cent to 9 per cent. It also raised its forecast for export growth as global demand has stayed strong amid Europe's debt and fiscal crisis.
"This should reinforce the view that fears from the Eurozone crisis may be exaggerated," DBS bank said in a report. Singapore, which has the highest percentage of millionaires in the world, is the first Asian economy to announce GDP results for the April-to-June quarter. The tiny island nation is often seen as a barometer of world demand because its economy — built on manufacturing and services like finance — is one of the most export-reliant in Asia.
Explosive growth
Manufacturing in the April-June quarter recorded explosive growth of 45.5 per cent compared with a year earlier.
"Growth was driven by a surge in the output of biomedical manufacturing, as well as a strong expansion in electronics underpinned by healthy worldwide demand," the ministry said.
