Singapore says economic weakness 'more advanced'
By ALEX KENNEDY – 6 hours ago
SINGAPORE (AP) — Singapore's faltering economy has entered a "more advanced stage of weakness" as falling trade and tourism from other Asian countries adds to a slump in demand for the city-state's exports from the U.S. and Europe, the central bank said.
"Singapore's economic growth could see further slippage in the quarters ahead," the bank, known as the Monetary Authority of Singapore, said in a report Tuesday. Apart from the manufacturing sector, services industries, such as transport and tourism, will also be hit by the slowdown in Asian economies, it said.
The bank reiterated a 2008 growth forecast of 3 percent and said next year the economy will likely perform "below its potential," which the government has previously estimated as an annual growth rate of between 4 percent and 6 percent.
Former Prime Minister Goh Chok Tong, who now holds the post of Senior Minister in the Cabinet, said recently the economy will likely grow less next year than this year.
Gross domestic product shrank 0.5 percent in the third quarter compared with a year earlier as a global economic slowdown triggered by a credit crisis in the U.S. hurt demand for Singapore's mainstay electronic and pharmaceutical exports. Manufacturing fell 8.5 percent in the third quarter.
"As the financial crisis evolves into a broader and more protracted contraction in economic activity worldwide, there will be significant knock-on effects for Singapore, given its heavy exposure to external demand," the bank said.
The bank reiterated its inflation forecast for this year of between 6 percent and 7 percent and for next year of between 2.5 percent and 3.5 percent.
By ALEX KENNEDY – 6 hours ago
SINGAPORE (AP) — Singapore's faltering economy has entered a "more advanced stage of weakness" as falling trade and tourism from other Asian countries adds to a slump in demand for the city-state's exports from the U.S. and Europe, the central bank said.
"Singapore's economic growth could see further slippage in the quarters ahead," the bank, known as the Monetary Authority of Singapore, said in a report Tuesday. Apart from the manufacturing sector, services industries, such as transport and tourism, will also be hit by the slowdown in Asian economies, it said.
The bank reiterated a 2008 growth forecast of 3 percent and said next year the economy will likely perform "below its potential," which the government has previously estimated as an annual growth rate of between 4 percent and 6 percent.
Former Prime Minister Goh Chok Tong, who now holds the post of Senior Minister in the Cabinet, said recently the economy will likely grow less next year than this year.
Gross domestic product shrank 0.5 percent in the third quarter compared with a year earlier as a global economic slowdown triggered by a credit crisis in the U.S. hurt demand for Singapore's mainstay electronic and pharmaceutical exports. Manufacturing fell 8.5 percent in the third quarter.
"As the financial crisis evolves into a broader and more protracted contraction in economic activity worldwide, there will be significant knock-on effects for Singapore, given its heavy exposure to external demand," the bank said.
The bank reiterated its inflation forecast for this year of between 6 percent and 7 percent and for next year of between 2.5 percent and 3.5 percent.
