Based on the advance estimates provided by the Ministry for Trade & Industry (MTI), the Singapore economy is estimated to contract 2.1 per cent for the whole of last year. Both manufacturing (-4.4%) and services producing industry (-2.2%) contracted over 2008. Only the construction sector showed positive growth (+16.3%).
What started off as a scary 6 to 9 per cent projected contraction forecasted by MTI on 14 April 2009, the economy did not fare badly by the end of the year. But a contraction of 2.1 per cent is bad enough and 2009 was a recession year.
The Singapore government is expecting this year to be a growth year at 3 to 5 per cent GDP growth rate on the back of Asian growth story especially from China and India. Barring any unforeseen problems faced by the US, Europe and Japan, we can be quietly confident that we will see better days ahead.
Written on 1/4/2010 4:09 PM
Copyright © 2010, the author known as LKT in Singapore.
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