Private sector economists are relooking their forecasts for the Singapore economy after advance estimates out on Wednesday showed third quarter GDP jumping by 9.4 percent compared to a year ago. The report by the Trade Ministry says growth was led by the construction and manufacturing sectors.
The construction sector is building a strong case for arguing that Singapore's growth could exceed the 7.9 per cent expansion last year.
The sector grew by a strong 15.5 percent in the third quarter, down from the 18.8 percent in the previous three months.
But economists say it continues to be a pillar of growth.
Meanwhile manufacturing grew a strong 12.3 percent.
Selena Ling, Treasury Economist, OCBC Bank, says: "We do think that the lagging electronics sector is showing signs of a pickup going into traditional Christmas peak season. Construction side, actually, there are some signs of a peak in growth because we have seen a moderation in growth rate in the sector.
"Although it's still double digit, and growing strong, maybe with all the guidelines as well as the higher development charges, we may see a slight moderation in construction activity going forward."
Economists say it is unlikely a slowing US economy, due its housing credit crisis, will have significant drag on Singapore.
David Cohen, Economist, Action Economics, says: "The impact seems concentrated on the housing sector which has little impact on global demand. It's mostly domestic concentrated. At the same time, trade data from across Asia in August, September shows little evidence of slowing. Total global demand is still healthy, powered by the strong growth in China and in India, in particular."
With this latest estimate, economists are now even more confident that Singapore's growth will meet the Trade and Industry Ministry's full-year forecast of 7 to 8 per cent.
In fact, most are putting their bets for the figure to exceed 8 percent, topping last year's 7.9 percent full year growth. - CNA/ch
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