Singapore upgrades growth outlooks

Singapore raised its full-year growth forecast for this year on Thursday to between 3.5 and 4 per cent as third-quarter gross domestic product exceeded prior estimates, helped by further signs of a recovery in manufacturing and continued strength in services.

The city state, which narrowly dodged a recession last year amid flagging demand for its exports, began a turnaround in the second quarter as manufacturing recovered and trade-related services boomed.

The government now expects the economy to grow by as much as 4 per cent this year, better than the earlier forecast of 2.5 to 3.5 per cent and last year’s 1.3 per cent.

“Externally oriented sectors such as manufacturing, wholesale trade, and transportation and storage are likely to support growth, in line with a slight pick-up in the global economy,” the Ministry of Trade and Industry said in a statement.

The upgrade means the economy will have stronger momentum going into next year, although the medium-term outlook will depend on the pace of global growth.

The ministry said next year’s growth will likely be between 2 per cent and 4 per cent, supported by a slow recovery in the United States and euro zone.