http://www.bloomberg.com/apps/news?pid=20601080&sid=aS0iKL6_yWko
By Shamim Adam
Dec. 31 (Bloomberg) -- Singapore’s economy is improving after a “volatile” year that saw it shrink for the first time since 2001, Prime Minister Lee Hsien Loong said.
Gross domestic product fell 2.1 percent this year, Lee, 57, said in his New Year message today. That’s in line with the government estimate for a contraction of 2 percent to 2.5 percent. The trade ministry forecasts the economy will expand 3 percent to 5 percent in 2010, an estimate reiterated by Lee.
“Our economy is growing again, and has recovered much of the ground since the recession began last year,” Lee said. “We continue to track the short-term economic trends closely, but we must focus beyond the crisis to secure Singapore’s long-term position.”
Singapore climbed out of its worst recession since independence in 1965 earlier this year as Asia led a rebound from the global economic slump. A “sluggish recovery” in overseas demand for goods made by companies such as Stats Chippac Ltd. may moderate growth prospects in the coming months, the government said in November.
The economy grew 3.5 percent in the fourth quarter from a year earlier, Lee said. That compares with the 3.8 percent median forecast of nine economists surveyed by Bloomberg News.
GDP probably contracted an annualized 2.1 percent in the fourth quarter from the previous three months, after climbing 14.2 percent from July to September, according to the median estimate of eight economists surveyed by Bloomberg. The trade ministry will release the economic data at 8 a.m. on Jan. 4.
Economies Stabilize
The global economy will experience “modest” growth next year even as “the worst is behind us,” Lee said in a commentary written for Bloomberg News yesterday.
“Worldwide, economies have stabilized,” Lee said today. “The U.S., Japan and Europe are starting to grow again, although problems remain and no one expects an exuberant boom,” while Asia is expected to resume its “rapid” growth, he said.
The nation’s economy shrank in the 12 months through March as the worst global recession since World War II curbed exports, prompted tourists to stay away and damped consumer spending.
The government cut corporate taxes and tapped its reserves to fund record spending this year in an effort to minimize job losses and help businesses and workers. It said this week it will extend by a year measures to help companies get financing, after deciding in October to prolong a wage-subsidy program.
Singapore is seeking ways to ensure its economy grows in a more sustained manner after three recessions in the past decade. Lee announced the formation of the Economic Strategies Committee in May, which is due to unveil its recommendations in January.
Casino Resorts
Economic growth in 2010 may be supported by the services industry amid the opening of two casino resorts, said Selena Ling, head of treasury research at Oversea-Chinese Banking Corp. in Singapore. Genting Singapore Plc unit Resorts World Sentosa plans to open its $4.5 billion project in early 2010, and Las Vegas Sands Corp. says it may open the Marina Bay Sands in April.
The government said last month it doesn’t expect a return to recessionary conditions even as the outlook for the second half of 2010 remains uncertain.
By Shamim Adam
Dec. 31 (Bloomberg) -- Singapore’s economy is improving after a “volatile” year that saw it shrink for the first time since 2001, Prime Minister Lee Hsien Loong said.
Gross domestic product fell 2.1 percent this year, Lee, 57, said in his New Year message today. That’s in line with the government estimate for a contraction of 2 percent to 2.5 percent. The trade ministry forecasts the economy will expand 3 percent to 5 percent in 2010, an estimate reiterated by Lee.
“Our economy is growing again, and has recovered much of the ground since the recession began last year,” Lee said. “We continue to track the short-term economic trends closely, but we must focus beyond the crisis to secure Singapore’s long-term position.”
Singapore climbed out of its worst recession since independence in 1965 earlier this year as Asia led a rebound from the global economic slump. A “sluggish recovery” in overseas demand for goods made by companies such as Stats Chippac Ltd. may moderate growth prospects in the coming months, the government said in November.
The economy grew 3.5 percent in the fourth quarter from a year earlier, Lee said. That compares with the 3.8 percent median forecast of nine economists surveyed by Bloomberg News.
GDP probably contracted an annualized 2.1 percent in the fourth quarter from the previous three months, after climbing 14.2 percent from July to September, according to the median estimate of eight economists surveyed by Bloomberg. The trade ministry will release the economic data at 8 a.m. on Jan. 4.
Economies Stabilize
The global economy will experience “modest” growth next year even as “the worst is behind us,” Lee said in a commentary written for Bloomberg News yesterday.
“Worldwide, economies have stabilized,” Lee said today. “The U.S., Japan and Europe are starting to grow again, although problems remain and no one expects an exuberant boom,” while Asia is expected to resume its “rapid” growth, he said.
The nation’s economy shrank in the 12 months through March as the worst global recession since World War II curbed exports, prompted tourists to stay away and damped consumer spending.
The government cut corporate taxes and tapped its reserves to fund record spending this year in an effort to minimize job losses and help businesses and workers. It said this week it will extend by a year measures to help companies get financing, after deciding in October to prolong a wage-subsidy program.
Singapore is seeking ways to ensure its economy grows in a more sustained manner after three recessions in the past decade. Lee announced the formation of the Economic Strategies Committee in May, which is due to unveil its recommendations in January.
Casino Resorts
Economic growth in 2010 may be supported by the services industry amid the opening of two casino resorts, said Selena Ling, head of treasury research at Oversea-Chinese Banking Corp. in Singapore. Genting Singapore Plc unit Resorts World Sentosa plans to open its $4.5 billion project in early 2010, and Las Vegas Sands Corp. says it may open the Marina Bay Sands in April.
The government said last month it doesn’t expect a return to recessionary conditions even as the outlook for the second half of 2010 remains uncertain.
