16 November 2012 05:27 [Source: ICIS news]
SINGAPORE (ICIS)--Singapore’s economy is projected to expand at “around 1.5%” this year, slower than the previous growth forecast of 1.5-2.5%, with the manufacturing sector being weighed down by tepid external demand, the Ministry of Trade and Industry (MTI) said on Friday.
In the third quarter, the economy posted an annual growth of 0.3%, much weaker than the MTI’s advanced growth estimate of 1.3% and a sharp deceleration from the 2.5% pace recorded in previous quarter.
Quarter-on-quarter, the economy shrank 5.9% in the three months to September, coming from a 0.5% expansion in the second quarter.
Manufacturing output in the three months to September declined 9.6% from the second quarter, while on a year-on-year basis, the sector registered a 0.8% contraction.
“Singapore’s economic growth is expected to remain subdued for the rest of 2012,” the MTI said.
“Growth may be slightly lower than forecast, if the weakness in the externally-oriented sectors persists into the final quarter of 2012,” it added.
Looking ahead, the MTI expects Singapore’s economic growth to be between 1.0-3.0% in 2013, with growth in export-dependent clusters such as electronics manufacturing and wholesale trade likely to remain soft.
“The global economy is expected to remain sluggish in 2013,” it said.“There remain concerns over the extent of the fiscal cutback in the US and potential escalation of the ongoing debt crisis in the eurozone. Should any of these risks materialise, Singapore’s economic growth could come in lower than expected,” the MTI said.
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