14 Jul 2012, 12.28PM
According to the Straits Times report, Singapore’s economy performed worse than expected in the second quarter, shrinking 1.1 % compared to the first quarter, as the three main engines of the global economy - the United States, China and Europe - faltered in recent months.
This was a sharp reversal from the 9.4% quarter-on-quarter growth recorded in the January to March period. Comparisons between consecutive quarters are used by economists to gauge the pace of growth, a barometer of economic health.
The Ministry of Trade and Industry (MTI) statement yesterday said that the weakened growth momentum in the second quarter was due mainly to a sequential contraction in the manufacturing sector, which declined by 6%, reversing the 20.9% expansion in the preceding quarter.
Trade and Industry Minister Lim Hng Kiang told reporters at the opening of a research lab that the slowdown was expected but expressed confidence that Singapore should be able to achieve between 1 and 3 per cent growth for the year. He said, 'So we're confident that if there is no major blow-up in the European situation, then Singapore should be able to achieve between 1 and 3 per cent growth.'
Read the MTI's press release "Singapore’s Growth Momentum Eased in Second Quarter 2012
" (PDF:36KB) and the Straits Times’ article “Economy shrinks by 1.1% in Q2
” for more details.
Share with us your views on how this weakened growth momentum would impact Singapore.