Singapore’s economic growth moderates in Q4 of 2007

Singapore’s economy expanded 5.4 percent on-year in the fourth quarter, falling short of the advance estimate for 6.0 percent growth, said the Ministry of Trade and Industry in a statement.

Singapore’s gross domestic product fell 4.8 percent in the fourth quarter from the third on a seasonally adjusted and annualised basis compared to an initial estimate for a 3.2 percent decline.

The economy contracted more than first estimated in the fourth quarter of 2007 and the Republic cut its 2008 growth forecast as the US nears a likely mild recession.

The economy grew a revised 5.1 percent in the third quarter from the second.

Singapore’s economy is forecast to grow between 4 to 6 percent in 2008 compared with the previous growth forecast of between 4.5 to 6.5 percent.

“Current conditions suggest that the US will likely enter a mild recession in the first half but its strong fundamentals, coupled with fiscal and monetary stimulus, will help to support recovery in the second half,” the statement said.

For 2007 the economy expanded 7.7 percent after expanding by a revised 8.2 percent in 2006.

Manufacturing expanded just 0.2 percent in the fourth quarter from a year earlier, while construction grew 24.3 percent.

The financial services sector grew 15.9 percent. – CNA/ch

Source : Channel NewsAsia – 14 Feb 2008

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