Singapore's economic growth moderates in Q2

Singapore's economic growth rate moderated to 8.1 percent year-on-year in the second quarter of this year from 10.8 percent in the previous quarter, but higher than the estimated 7.5 percent, according to the figures released by the Ministry of Trade and Industry (MTI) on Thursday.

However, Prime Minister Lee Hsien Loong announced Tuesday in his National Day message that the MTI has raised the country's economic growth forecast for the whole year from between 5 percent and 7 percent to between 6.5 percent and 7.5 percent, which is the third rise in the year.

The MTI said that the revision is based on the economy's strong 9.4 percent growth in the first half of this year, the generally positive outlook for the global economy and the healthy domestic growth prospects.

Total demand rose by a moderated 11 percent in the second quarter over the corresponding period of last year as the domestic demand grew by 4.9 percent and the external demand increased by 13 percent.

The manufacturing sector grew by 12 percent in the second quarter year-on-year while the construction sector registered a marginally positive growth of 0.2 percent in the same months. The growth of major services sectors except the financial services eased in the second quarter.

The external trade expanded by a robust 18 percent in the second quarter and the non-oil domestic exports increased by 15 percent year-on-year during the same period.

The consumer price inflation (CPI) rose by 1.2 percent in the quarter over a year ago.

Singapore's gross domestic product (GDP) grew by 6.4 percent in 2005 over the previous year.

Source: Xinhua