Singapore economy grows 1.3 per cent in 2012

SINGAPORE: Growth in Singapore's trade-reliant economy slowed down sharply last year, expanding 1.3 per cent as exports tumbled due to a global economic slump, official data showed yesterday.

Although full-year growth was marginally higher than the 1.2 per cent figure given by Prime Minister Lee Hsien Loong last month based on preliminary data, it still marked a steep deceleration from the 5.2 per cent expansion in 2011.

The key manufacturing sector bore the brunt of the slowdown, as global demand for electronics goods softened. “For the whole of 2012, Singapore's gross domestic product (GDP) growth slowed to 1.3 per cent, from 5.2 per cent in 2011, mainly due to weakness in the externally- oriented sectors,” the trade ministry said in a statement.

“Weighed down by the contraction in the electronics cluster, (the) manufacturing sector growth slowed sharply from 7.8 per cent in the previous year to 0.1 per cent.” Electronics shrank by 11.3 per cent in 2012, faring the worst out of Singapore's six major manufacturing clusters.

Overall GDP was supported by a buoyant construction sector which grew 8.2 per cent last year, the ministry said. Services rose 1.2 per cent.

For the fourth quarter of 2012, GDP expanded a better than expected 1.5 per cent year on year.

The ministry maintained its 2013 growth forecast at one to three per cent in light of economic worries in Europe and the US.

“While downside risks have receded, the global economic outlook is still clouded with uncertainties,” the ministry said.

“In particular, concerns remain over the extent of the fiscal cutback with the budget sequester in the US, as well as the potential flare-up of the debt crisis in the eurozone. — AFP