MTI Expects 2008 Growth to be 4.0 – 5.0%

11 August 2008. The Ministry of Trade and Industry (MTI) announced today that the Singapore economy is expected to grow by 4.0 – 5.0 per cent in 2008.

The narrowing of the forecast range for 2008 from 4.0 – 6.0 per cent to 4.0 –5.0 per cent is consistent with the moderation in economic growth seen in the second quarter. GDP grew by 2.1 per cent year-on-year, down from the 6.9 percent increase in the preceding quarter. Growth on an annualised, quarter-on-quarter basis fell by 6.0 per cent, from an increase of 15.7 per cent in the first quarter. For the first half of 2008, real GDP grew by 4.5 per cent.

The lower growth in the second quarter was mainly the result of a sharp contraction in biomedical manufacturing value-added, reflecting a switch in product mix to pharmaceutical ingredients with lower values compared to a year ago. Stagnant growth in the electronics industry also contributed to the slowdown in GDP growth. The services sector continued to grow at a healthy pace, albeit slightly slower than in the first quarter; financial services and business services continued to register robust growth. Growth in construction remained strong.

Download the full press release [PDF, 45 KB].

Economic Survey of Singapore Second Quarter 2008

Ministry of Trade and Industry
11 August 2008