Singapore’s economy grew at its fastest rate in at least 35 years in the first three months of this year, bouncing back from a contraction the previous quarter as manufacturing activity more than doubled.
GDP grew at an annualized, seasonally adjusted, 32.1 percent in the first quarter from the previous quarter, the biggest leap since quarterly results began in 1975, the Trade and Industry Ministry said yesterday.
The economy grew 13.1 percent in the first quarter from the same period a year ago and the government boosted its GDP forecast for this year to between 7 percent and 9 percent from between 4.5 percent and 6.5 percent, the ministry said.
PHOTO: REUTERS
“The recovery of the Singapore economy has been stronger than expected and more entrenched since the beginning of this year,” the central bank said. “Looking ahead, domestic economic activity is likely to be sustained at a relatively high level.”
Singapore’s strong GDP numbers suggest demand from the US is recovering and Asia has emerged from last year’s recession as a leading driver of global growth.
The city-state was the first Asian country to report first-quarter GDP results, while China is scheduled to do so today.
Industrial production jumped 139 percent from the previous quarter, led by electronics and biomedical industries, while the service sector grew 11 percent, the ministry said.
Singapore’s economy relies on trade, finance and tourism.
The preliminary first quarter GDP results were based mostly on data from January and February, and may be revised when the government announces complete results next month, the ministry said.
The central bank, known as the Monetary Authority of Singapore, said yesterday after a twice-a-year policy review that it had shifted its exchange rate target from a zero percent appreciation of the Singapore dollar to a “modest and gradual” appreciation in a bid to dampen inflation.
“The move is fully justified, not only by the enormous strength of Q1 GDP, but the likely sustainability of the recovery,” said Robert Prior-Wandesforde, senior Asia analyst for HSBC.
“The Asian recovery has become self-sustaining,” Prior-Wandesforde said.
The government also raised its inflation forecast for this year by 0.5 percentage points to between 2.5 percent and 3.5 percent.
“Inflationary pressures are likely to pick up, driven by rising global commodity prices,” the central bank said after its policy review meeting.
The Taipei MRT is open all night tonight following New Year’s Eve festivities, and is offering free rides from nearby Green Line stations. Taipei’s 2025 New Year’s Eve celebrations kick off at Taipei City Hall Square tonight, with performances from the boy band Energy, the South Korean girl group Apink, and singers Gigi Leung (梁詠琪) and Faith Yang (楊乃文). Taipei 101’s annual New Year’s firework display follows at midnight, themed around Taiwan’s Premier12 baseball championship. Estimates say there will be about 200,000 people in attendance, which is more than usual as this year’s celebrations overlap with A-mei’s (張惠妹) concert at Taipei Dome. There are
ANNOUNCEMENT: People who do not comply with the ban after a spoken warning would be reported to the police, the airport company said on Friday Taoyuan International Airport Corp on Friday announced that riding on vehicles, including scooter-suitcases (also known as “scootcases”), bicycles, scooters and skateboards, is prohibited in the airport’s terminals. Those using such vehicles should manually pull them or place them on luggage trolleys, the company said in a Facebook post. The ban intends to maintain order and protect travelers’ safety, as the airport often sees large crowds of people, it said, adding that it has stepped up publicity for the regulation, and those who do not comply after a spoken warning would be reported to the police. The company yesterday said that
NEW YEAR’S ADDRESS: ‘No matter what threats and challenges Taiwan faces, democracy is the only path,’ William Lai said, urging progress ‘without looking back’ President William Lai (賴清德) yesterday urged parties across the political divide to democratically resolve conflicts that have plagued domestic politics within Taiwan’s constitutional system. In his first New Year’s Day address since becoming president on May 20 last year, Lai touched on several issues, including economic and security challenges, but a key emphasis was on the partisan wrangling that has characterized his first seven months in office. Taiwan has transformed from authoritarianism into today’s democracy and that democracy is the future, Lai said. “No matter what threats and challenges Taiwan faces, democracy is the only path for Taiwan,” he said. “The only choice
CORRUPTION: Twelve other people were convicted on charges related to giving illegal benefits, forgery and money laundering, with sentences ranging from one to five years The Yilan District Court yesterday found Yilan County Commissioner Lin Zi-miao (林姿妙) guilty of corruption, sentencing her to 12 years and six months in prison. The Yilan District Prosecutors’ Office in 2022 indicted 10 government officials and five private individuals, including Lin, her daughter and a landowner. Lin was accused of giving illegal favors estimated to be worth NT$2.4 million (US$73,213) in exchange for using a property to conduct activities linked to the 2020 Chinese Nationalist Party (KMT) presidential and legislative election campaigns. Those favors included exempting some property and construction firms from land taxes and building code contraventions that would have required