S'pore economy predicted to grow by 4% to 5% in '99

S'pore economy predicted to grow by 4% to 5% in '99

SINGAPORE (AP): Singapore's economy is recovering from Asia's financial crisis and will grow by 4 percent to 5 percent in 1999, the U.S. Embassy said in a report on economic trends in Singapore.

"The economy is likely to gain momentum in the second half of the year, when the global electronic upswing, continued regional recoveries, and domestic competitiveness-enhancing measures begin to register their full effects," the embassy said in a report released Monday.

"These upbeat factors, together with the statistical low base of 1998, should enable the Singapore economy to achieve a 4 to 5 percent GDP growth rate for 1999," the report said.

The forecast is in contrast to Singapore's own predictions, which show the economy expanding by just 2 percent this year. The Singapore government has, however, indicated that it may upgrade its growth forecast.

Singapore recently revised downward its figure on last year's economic growth to 0.3 percent from 1.5 percent, and this year's first-quarter growth was adjusted to 0.8 percent from 1.2 percent, using a new measure of economic activity.

The gross domestic product, or GDP, is the measure of all goods and services produced within a country.

The U.S. Embassy report said analysts of the Singapore economy are unanimous in their prognosis that the economic outlook has brightened considerably since the beginning of the year.

In addition to a global revival in electronics demand, the recovery of the Singapore economy was also attributed to low interest rates, increased government spending, currency stability, higher exports and a stock market rally that is reviving consumer spending, the report said.

However, it said, the recovery could be delayed if U.S. stock prices drop sharply, if Japan fails to pull out of its decade- long economic malaise or if economies in the region relapse due to unresolved structural weaknesses.