Singapore GDP annual growth rates and STI (1997 to 2012)

Annual growth rates for Singapore real Gross Domestic Product (GDP) are mapped to the Straits Times Index (STI) at the end of each year.

Year GDP growth rate (%) STI
1997 + 8.5 1529
1998 – 2.2 1392
1999 + 6.2 2479
2000 + 9.0 1926
2001 – 1.2 1623
2002 + 4.2 1341
2003 + 4.6 1764
2004 + 9.2 2066
2005 + 7.4 2347
2006 + 8.6 2985
2007 + 9.0 3482
2008 + 1.7 1761
2009 – 0.8 2897
2010 + 14.8 3190
2011 + 5.2 2646
2012 + 1.3 3167

Source: Singapore Department of Statistics (for GDP numbers)

The table below shows the major financial crises that affected the STI.

Date Crises STI
31 August 1998 Asian Financial Crisis (1997/98) 856
31 May 2000 Dot-com Bubble 1795
28 September 2001 Sept 11 attack on twin towers 1319
31 March 2003 SARS 1267
31 December 2008 Global financial crisis (2008/09) 1761
9 March 2009 Global financial crisis (2008/09) 1456

STI declined significantly during a crisis.

After SARS, economic growth gathered pace for a good four years from 2003 to 2007. STI reached its highest level in October 2007 at 3807. When the global financial crisis started in December 2007, the STI was at 3482. It went through a major dip touching 1456 on 9 March 2009.

After 2009, Singapore GDP shot up 14.8% in 2010 which was an exceptional year. Real GDP then moderated to 5.2% in 2011 and lowered further in 2012 at 1.3%.

Forecast GDP 2013

The recent forecast for GDP growth rate is between 2.5% to 3.5% by the end of this year. This is better than last year, but not exceptional.

The current level of STI was 3,229 points (7 August 2013). STI at end of 2012 was 3,167 when GDP growth rate of last year was 1.3%.

If one considers GDP as a gauge of performance of STI, what would STI be at end of 2013? Only 4 months+ to know the outcome. Then again, there may other unknown unknowns during this period that could throw the GDP number haywire.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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