Gradual economic pickup expected for Singapore
The Singapore economy is likely to settle at a more gradual pace of expansion, with GDP growth in 2010 expected to be lower than in previous post-recession periods.
The Monetary Authority of Singapore (MAS) said in its Macroeconomics Review released on Thursday that compared to six months ago, the outlook for the second half of 2009 and for 2010 is "markedly more optimistic".
However, the MAS also sounded a word of caution in its report which is published twice a year.
"As we approach 2010, GDP growth will likely shift to a more sustainable trajectory, underpinned by a modest turnaround in final demand in Singapore's key external markets," it said.
It said concerns remain about the resilience of global demand, given the lingering weakness in the financial sectors and labour markets of developed economies.
Among Singapore's major trading partners, those that are expected to grow below their long-term trends next year account for nearly half of the island's total exports. The MAS said this points to domestic growth that is likely to be lower compared to previous post-recession periods.
It added that while Singapore's recovery from the downturn may become more broad-based, job creation could, nonetheless, be modest in 2010 as the relatively small job losses resulting from this downturn means that firms may be carrying surplus labour.
External factors will also continue to influence the cost of living in Singapore, with the MAS expecting inflation to come in at around 0 per cent in 2009, before rising to 1-2 per cent in 2010.
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The Monetary Authority of Singapore (MAS) said in its Macroeconomics Review released on Thursday that compared to six months ago, the outlook for the second half of 2009 and for 2010 is "markedly more optimistic".
However, the MAS also sounded a word of caution in its report which is published twice a year.
"As we approach 2010, GDP growth will likely shift to a more sustainable trajectory, underpinned by a modest turnaround in final demand in Singapore's key external markets," it said.
It said concerns remain about the resilience of global demand, given the lingering weakness in the financial sectors and labour markets of developed economies.
Among Singapore's major trading partners, those that are expected to grow below their long-term trends next year account for nearly half of the island's total exports. The MAS said this points to domestic growth that is likely to be lower compared to previous post-recession periods.
It added that while Singapore's recovery from the downturn may become more broad-based, job creation could, nonetheless, be modest in 2010 as the relatively small job losses resulting from this downturn means that firms may be carrying surplus labour.
External factors will also continue to influence the cost of living in Singapore, with the MAS expecting inflation to come in at around 0 per cent in 2009, before rising to 1-2 per cent in 2010.
Click here for Full Article Source & Image Source.
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Labels: economy, employment
posted by Jorbb @ 4:35 PM
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