Enter multiple symbols separated by commas

Singapore's Economy Grows 7.6% in First Quarter, Forecast Raised

Singapore's trade-driven economy grew faster than expected on the back of a property and services sector boom, prompting the government to raise its 2007 GDP growth forecast to 5.0-7.0%, from 4.5-6.5%.

Economic growth came in at an annualized rate of 7.6% in the first quarter, after seasonal adjustments, the Ministry of Trade and Industry said in a statement, "The Singapore economy started on a strong note," the ministry said, adding that "economic growth is expected to remain healthy in 2007."

Analysts in a Reuters poll had expected the S$210 billion (US$138 billion) economy to grow an annualized 6.1%, after seasonal adjustments, below the government's advance estimate, due to sluggish manufacturing.

First-quarter growth also beat the government's advance estimate of 7.2% announced on April 10, which was based largely on data from January and February and reflected surging tourist arrivals, fast-growing financial services, and construction work on the first of two multi-billion-dollar casinos.

From a year earlier, the economy grew 6.1% in the first quarter, beating the 5.7% median forecast of 13 economists and just above the government's 6.0% advance estimate. David Cohen, an economist with Action Economics, said stronger growth in the construction sector had offset the contraction in manufacturing on an annualized basis.

"The data show that Singapore's strong economic performance is continuing despite a recent spate of weak manufacturing and NODX figures. It does show there is no need to be overly concerned," Cohen told Reuters.

Singapore's economy grew by a robust 7.9 percent in 2006.

Lee Kuan Yew, Singapore's former prime minister, told Reuters last month that growth would be at the upper end of the government's forecast, provided U.S. consumer spending stays resilient.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Growth the cure for Greece woes: Economist

    Michael Zinn, UBS Wealth Management senior v.p., and Joseph LaVorgna, Deutsche Bank, share their thoughts on the financial stability of the euro zone as creditors knock on Greece's door. You have to have a way to collect taxes, says LaVorgna.

  • Grexit a 'danergous experiment': Larry Summers

    Larry Summers, Harvard University, shares his thoughts on whether Greece can be saved and what would likely happen if Greece left the euro zone.

  • This Day in History, June 30

    On this day in history, in 1953 the first Corvette was manufactured, in 1994 the U.S. Ice Skating Federation bans Tonya Harding for life, and in 2000, President Clinton signs the Electronic Signature Act.