Friday, October 12, 2012

Singapore economy shrinks but avoids recession



Singapore's economy shrank by 1.5 percent in the third quarter but avoided a technical recession after growth in the previous three months was adjusted, government figures showed Friday.

The Ministry of Trade and Industry said the export-driven city-state was still on track to achieve annual growth of 1.5-2.5 percent in 2012.

"Economic growth in the second quarter was better than expected, resulting in an upward revision of quarter-on-quarter annualised growth from the preliminary estimates of -0.7 per cent to 0.2 per cent," it said.

"The revision was due to new data from the construction sector, which registered higher certified progress payments from private sector industrial and residential projects," it added.

Two successive quarters of negative growth are regarded as a technical recession. Singapore is seen as a bellwether for Asia's leading economies because of its sensitivity to world trade.-Interaksyon (Ocotober 12, 2012 8:45AM)

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