Singapore expects 5-per-cent economic growth this year

Oct 14, 2011, 1:12 GMT

Singapore - Singapore's economy was expected to grow about 5 per cent this year, the government said Friday as it lowered its estimate because of weakening global economic conditions and slowing demand for the city-state's exports.

The Trade and Industry Ministry had earlier forecast 2011 gross domestic product (GDP) growth of 5 to 6 per cent.

Estimates of third-quarter GDP growth based on data for the first two months of the period indicated growth of 5.9 per cent year-on-year, an improvement from 1 per cent in the second quarter, but global economic uncertainty would weigh down results for the remainder of the year, it said.

It said those uncertainties would particularly impact demand for Singapore's electronics and the financial services sector could also be dampened.

Pharmaceutical output was expected to be higher in the near term so the biomedical manufacturing sector could provide some support to growth, the ministry said.

Manufacturers led third-quarter growth, expanding an estimated 13.2 per cent after contracting 5.8 per cent in the second quarter.

The service industry grew by 3.6 per cent on a year-on-year basis, off slightly from 4-per-cent growth in the preceding quarter.