Economists expect Singapore’s economy to grow by 12-23% in Q2

Source : Channel NewsAsia – 13 Jul 2009

Most economists expect Singapore to achieve a double-digit economic growth for the second quarter of 2009.

This could range between 12 and 23 per cent on a seasonally-adjusted, quarter-on-quarter basis.

They attribute the forecast to better industrial production and external trade numbers over the past months.

In addition, observers said the financial services sector, stock market and property sector have all improved in the second quarter.

On a year-on-year basis, economists project Singapore’s gross domestic product (GDP) to shrink by between 3.8 and 6 per cent.

This compares to the 10.1 per cent on-year contraction in the first quarter.

Despite the upbeat outlook, some economists expect unemployment to hit 4.2 per cent this year, before dipping to 3.4 per cent by the end of 2010.

There are also signs that Singapore is on course for a “V-shaped” recovery.

Robert Prior-Wandesforde, Co-Head, Asian Economics, Global Markets, HSBC, said: “We think it will be sustained, there are risks; clearly, this initial phase of recovery has been driven heavily by the volatile pharmaceutical sector, and of course that could slow again.

“But what is important is that we are seeing bigger industries like electronics showing at least tentative signs of recovery, and I think the scale of policy easing within the region is going to lift trade in Asia, including the most open economies in Asia like Singapore.”