Singapore’s economy will likely rebound strongly from last year’s recession as surging export demand fuels manufacturing, according to a central bank survey of analysts.
The city-state’s GDP is expected to grow 9 percent this year, according to the median forecast of 19 economists in the quarterly survey, the Monetary Authority of Singapore said yesterday.
In the previous survey in March, analysts had expected the economy would grow 6.5 percent this year.
Singapore’s economy — which relies on trade, finance and tourism — will likely be led this year by a 16.7 percent expansion in manufacturing as non-oil exports soar 17.8 percent, the analysts said.
The government boosted its growth forecast for this year in April to a range of 7 to 9 percent from 4.5 to 6.5 percent as Singapore emerged from a recession last year. The economy expanded 15.5 percent in the first quarter from a year earlier as pharmaceutical and electronic production surged.
“The exceptionally good result in the first half was helped by a comparison to a low base,” said Irvin Seah, an economist at DBS bank in Singapore. “We’ll likely see another double-digit growth figure in the second quarter.”
DBS raised this week its growth forecast for this year to 10.3 percent from 9 percent.
Growth will likely slow in the second half because of weaker export demand from Asia as regional policymakers tighten monetary policy and wind down stimulus spending programs, Seah said.
Analysts forecast that the economy would grow 9.4 percent in the second quarter from a year earlier, 6 percent in the third and 5.5 percent next year, the central bank said.
Inflation is expected to rise to 2.8 percent this year, the unemployment rate will be 2 percent and the exchange rate will average S$1.356 against the greenback, little changed from the March survey, the analysts said.
CRITICAL MOVE: TSMC’s plan to invest another US$100 billion in US chipmaking would boost Taiwan’s competitive edge in the global market, the premier said The government would ensure that the most advanced chipmaking technology stays in Taiwan while assisting Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in investing overseas, the Presidential Office said yesterday. The statement follows a joint announcement by the world’s largest contract chipmaker and US President Donald Trump on Monday that TSMC would invest an additional US$100 billion over the next four years to expand its semiconductor manufacturing operations in the US, which would include construction of three new chip fabrication plants, two advanced packaging facilities, and a research and development center. The government knew about the deal in advance and would assist, Presidential
‘DANGEROUS GAME’: Legislative Yuan budget cuts have already become a point of discussion for Democrats and Republicans in Washington, Elbridge Colby said Taiwan’s fall to China “would be a disaster for American interests” and Taipei must raise defense spending to deter Beijing, US President Donald Trump’s pick to lead Pentagon policy, Elbridge Colby, said on Tuesday during his US Senate confirmation hearing. The nominee for US undersecretary of defense for policy told the Armed Services Committee that Washington needs to motivate Taiwan to avoid a conflict with China and that he is “profoundly disturbed” about its perceived reluctance to raise defense spending closer to 10 percent of GDP. Colby, a China hawk who also served in the Pentagon in Trump’s first team,
SEPARATE: The MAC rebutted Beijing’s claim that Taiwan is China’s province, asserting that UN Resolution 2758 neither mentions Taiwan nor grants the PRC authority over it The “status quo” of democratic Taiwan and autocratic China not belonging to each other has long been recognized by the international community, the Mainland Affairs Council (MAC) said yesterday in its rebuttal of Beijing’s claim that Taiwan can only be represented in the UN as “Taiwan, Province of China.” Chinese Minister of Foreign Affairs Wang Yi (王毅) yesterday at a news conference of the third session at the 14th National People’s Congress said that Taiwan can only be referred to as “Taiwan, Province of China” at the UN. Taiwan is an inseparable part of Chinese territory, which is not only history but
INVESTMENT WATCH: The US activity would not affect the firm’s investment in Taiwan, where 11 production lines would likely be completed this year, C.C. Wei said Investments by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in the US should not be a cause for concern, but rather seen as the moment that the company and Taiwan stepped into the global spotlight, President William Lai (賴清德) told a news conference at the Presidential Office in Taipei yesterday alongside TSMC chairman and chief executive officer C.C. Wei (魏哲家). Wei and US President Donald Trump in Washington on Monday announced plans to invest US$100 billion in the US to build three advanced foundries, two packaging plants, and a research and development center, after Trump threatened to slap tariffs on chips made
RSS