Singapore’s economy disappoints in Q2

Singapore’s economy grew just 0.5% in the April to June period after manufacturing activity was hit by Japan’s earthquake and tsunami, which disrupted supply chains.

The figure was much lower than the 1.1% expected by analysts.

Furthermore, it was much lower than the 9.3% reported in the previous quarter as manufacturing was 5.5% lower in the second quarter compared with a year earlier.

Singapore was the fastest growing Asian economy in 2010 but is now struggling to maintain last year’s record growth.

In the meantime, compared to the previous quarter, GDP actually contracted at a rate equivalent to an annualised 7.8% and analysts are now concerned that the economy will not meet its growth targets.

However, in light of today’s figures, Singapore is likely to review its growth forecasts.

Discuss this in the Finance Markets forums

Story link: Singapore’s economy disappoints in Q2