S'pore Q3 Economy Grows 9.4%

Source : The Straits Times, Oct 10, 2007

THE Singapore economy grew strongly, at 9.4 per cent on a year-on-year basis in the third quarter of this year.

Growth of the services producing industries eased slightly to 8.1 per cent from 8.4 per cent. The financial services sector led the growth. -- PHOTO: MALCOLM MCLEOD

The latest figure is up from 8.7 per cent in the previous quarter and within market forecasts. Economists were expecting third-quarter growth between 9 and 10 per cent.

The Advance GDP Estimates issued by the Ministry of Trade and Industry on Wednesday indicated that the economy is well on track to meet the 7-8 per cent growth forecast for 2007 announced in August.

The Republic's expansion has pushed inflation and home prices to the highest in more than a decade and encouraged companies to hire at an unprecedented pace.

On a quarter-on-quarter basis, GDP growth decelerated to 6.4 per cent from 14.4 per cent a quarter earlier.

The estimates are computed from the first two months' data - July and August 2007. They are an early indication of the GDP growth in the quarter and may be revised when more comprehensive data becomes available.

Manufacturing
Underpinned by strong growth in the biomedical manufacturing and transport engineering clusters, the manufacturing sector is estimated to have grown by 12.3 per cent in the third quarter, up from 8.3 per cent in the previous quarter.

The construction sector grew by a robust 15.5 per cent compared with 18.8 per cent in the second quarter.

Growth of the services producing industries eased slightly to 8.1 per cent from 8.4 per cent. The finnacial services sector led the growth.

The preliminary GDP estimates for the third quarter will be released next month in the Economic Survey of Singapore.