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SG Singapore's economy looking up

Property Here - Friday, July 12, 2013

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Singapore's economic growth accelerated in Q2 after a slow first quarter, outstripping its performance during the same period last year, according to the Ministry of Trade and Industry (MTI).

MTI estimated that Singapore's economy grew 3.7 percent in Q2 from the previous year, up from the small 0.2 percent growth in Q1.

The country's GDP in Q2 advanced 15.2 percent from the previous quarter on a seasonally-adjusted, annualised basis - stronger than the 1.8 percent growth posted in Q1, according to media reports.

The growth was supported by the robust manufacturing sector and strong construction figures.

Choo Chee Oon, Managing Director of property development and construction company KSH Holdings, said order books were filled for the next five years.

“As long as there is a demand for homes, the construction sector will be steady,” Choo said.

But while growth in the construction sector is expected to be supported by a steady stream of public infrastructure projects and private residential developments, analysts have previously warned that sustained growth through the remaining part of the year will also face many challenges.

ANZ economist Daniel Wilson said the global economy would impact any likely growth moving forward.

He said local manufacturers were expecting a recovery in the US, but if this did not happen, "the rebound in industrial production [would] likely be short-lived and manufacturers [would] be dealing with an inventory overhang".

 

Amy Kelly, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories emailamy@allproperty.com.sg