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S'pore economy set for stellar showing
05:55 AM Mar 30, 2010
SINGAPORE - The Singapore economy is poised for a stellar performance with gross domestic product expected to grow between 11 and 20 per cent in the first quarter of this year compared to a year ago.
Analysts reckon that electronics and pharmaceuticals are expected to take the lead and they are bullish on the outlook as well saying that it appears relatively strong.
About 51,000 jobs were created in the last eight months and Singapore's industrial sector has also grown about 33 per cent since November last year.
Analysts said these factors appear to be sustainable and drive the Singapore economy ahead.
HSBC Private Bank, head of investment strategy, Asia, Mr Arjuna Mahendran, said: "There's a very strong V-shaped recovery upon us. I feel that this growth momentum is sustainable for a very simple reason which is that you're seeing a process of restocking commencing in the major developed markets in the US and in Europe."
HSBC believes this will be fuelled by Singapore's reputation for being able to produce quality products in the biomedical sector.
But going ahead, analysts remain concerned about when central banks globally will start to tighten monetary policy and also potential asset bubbles.
Some analysts also said that the services industry should not be overlooked. With more tourist arrivals and higher hotel occupancy rates, the services sector might just be a surprise performer for this year.
For the full year, analysts say the Singapore economy could grow at the top end of between 6.2 per cent and 6.5 per cent of the Government's forecast range of 4.5 to 6.5 per cent.
The Government is expected to announce the final first-quarter economic numbers around mid-May. May Wong
05:55 AM Mar 30, 2010
SINGAPORE - The Singapore economy is poised for a stellar performance with gross domestic product expected to grow between 11 and 20 per cent in the first quarter of this year compared to a year ago.
Analysts reckon that electronics and pharmaceuticals are expected to take the lead and they are bullish on the outlook as well saying that it appears relatively strong.
About 51,000 jobs were created in the last eight months and Singapore's industrial sector has also grown about 33 per cent since November last year.
Analysts said these factors appear to be sustainable and drive the Singapore economy ahead.
HSBC Private Bank, head of investment strategy, Asia, Mr Arjuna Mahendran, said: "There's a very strong V-shaped recovery upon us. I feel that this growth momentum is sustainable for a very simple reason which is that you're seeing a process of restocking commencing in the major developed markets in the US and in Europe."
HSBC believes this will be fuelled by Singapore's reputation for being able to produce quality products in the biomedical sector.
But going ahead, analysts remain concerned about when central banks globally will start to tighten monetary policy and also potential asset bubbles.
Some analysts also said that the services industry should not be overlooked. With more tourist arrivals and higher hotel occupancy rates, the services sector might just be a surprise performer for this year.
For the full year, analysts say the Singapore economy could grow at the top end of between 6.2 per cent and 6.5 per cent of the Government's forecast range of 4.5 to 6.5 per cent.
The Government is expected to announce the final first-quarter economic numbers around mid-May. May Wong
