U.S. sees S'pore growth at 7%

U.S. sees S'pore growth at 7%

SINGAPORE (AFP): The U.S. government on Tuesday projected Singapore's economy would grow by 6.5 to 7.0 percent this year on strong external demand, but expansion was seen slowing in the second half.

The forecast, contained in a report by the U.S. embassy here, is on the upper end of the Singapore government's projection of a 5.5 to 7.5 percent growth in the city-state's gross domestic product (GDP).

Strong import demand for electronics and pharmaceuticals from the United States and Europe -- Singapore's main export markets -- is expected to power this year's economic expansion, the report said.

While the local economy posted a strong kickstart with 9.1 percent GDP growth in the first quarter and a stronger-than- expected 7.7 percent rise in the second quarter, it was seen moderating in the second half as exports taper off.

Production in semiconductors and telecommunications equipment would likely be weighed down by the "relatively faster decline" in the output of disk drives, assembled printed circuit boards and personal computers as companies relocate to lower-cost countries or restructure, the report said.