Factors supporting Singapore's economic growth remain intact: MAS

Factors that supported Singapore 's economic growth in 2005 remain intact, the Monetary Authority of Singapore (MAS) said Tuesday in its biannual macroeconomic review.

MAS, the country's central bank, estimated that the city state's Gross Domestic Product (GDP) is on track for achieving the projected growth rate of between 4 percent and 6 percent for 2006 though the economic growth moderated in the first quarter of this year.

In 2005, Singapore's GDP grew by a better-than-expected 6.4 percent.

The external environment, including the world economic growth and the global demand for electronics products, remains favorable in 2006 while "domestic price pressures should be fairly well- contained," said MAS.

The manufacturing sector is to sustain increase this year, which,together with growing regional economies led by China and India, will benefit the trade-related services, MAS noted, adding that the outlook for the financial services sector is also positive.

In addition, MAS identified six emerging industries or segments, which now account for a relatively small share of each sector, expecting them to provide greater stimulus to the country's economic growth eventually.

They are the consumer electronics segment and the biomedical industry in the manufacturing sector, the non-oil re-exports to China and India in the trade-related services sector, the lifestyle segment in the retail sector, the wealth advisory services in the financial services sector, as well as the luxury homes segment in the construction sector.

Source: Xinhua