S'pore economy grows 10.4% in 3rd quarter
S'pore economy grows 10.4% in 3rd quarter
SINGAPORE (AFP): Singapore's economy grew at an annual rate of 10.4 percent in the third quarter of this year, prompting the government to raise its target for the year to 9.5 percent.
The ministry of trade and industry said the stronger-than- expected figures reflected robust domestic and external demand and a strong export performance.
Gross domestic product (GDP) expanded 9.8 percent in the nine months to September, the ministry said. The third quarter GDP expansion bettered the earlier estimate of 10.2 percent.
External demand, boosted by robust electronics exports, was the "key locomotive" surging 19 percent, up from 12 percent in the second quarter, the ministry said.
Domestic consumption rose 8.8 percent, with increases noted in household spending on motor vehicles, recreation and clothing.
"In view of the overall positive outlook and revision in the growth in the nine months, the official growth projection for the Singapore economy in 2000 has been raised from around 9.0 percent to around 9.5 percent," the ministry said in a statement.
A preliminary forecast suggests growth next year will be between five and seven percent.
The third quarter growth cut across almost all sectors.
Manufacturing output rose 15.5 percent from 13.3 percent the previous quarter. Financial services swung up 4.4 percent after contracting 1.0 percent and construction slowed down its slide to 1.3 percent from 1.7 percent.
Wholesale and retail output remained steady with a growth of 15.2 percent, while hotels and restaurants output climbed 9.0 percent from 7.4 percent.
Transport and communications output grew 9.2 percent, slightly slower than the 9.5 percent posted in the second quarter. Output of business services rose 7.7 percent from 6.4 percent.
"The external economic outlook remains favorable," the ministry said, citing projections by the International Monetary Fund (IMF) that the world economy will grow by 4.7 percent this year and 4.2 percent in 2001.