Growth estimates revised down with GDP
decline
Posted: 10 October 2008 0812 hrs
SINGAPORE: Against the less than
favourable economic environment, Singapore’s GDP growth forecast for 2008 has been revised to around
3% from 4-5%.
Singapore’s Monetary Authority said in a release Friday that
economic growth is likely remain below its potential rate over the
next few quarters with prospects of a recovery in the latter half
of 2009 depending significantly on how conditions evolve.
It also cited the latest advance estimates released by the
Ministry of Trade and Industry which show that Singapore’s
GDP declined by 6.3% on a quarter-on-quarter
seasonally adjusted annualised basis in Q3
2008.
The decline for a second straight quarter, means the city-state
has entered a recession for the first time in six years.
Trade figures indicated a slowdown that was generally broad
based as external shocks were transmitted to the domestic economy
via both the financial and trade channels.
The MAS said, looking ahead, the outlook
for the global economy has deteriorated and a more severe global
downturn cannot be discounted.
The heightened risk aversion and deleveraging in the financial
sector, it said creates new uncertainties for the Singapore
economy.
Source: Channelnewsasia
