Singapore keeps growth forecast amid eurozone woes

Singapore on Thursday stuck to its economic growth projections of 1.0-3.0 percent for 2012 but warned there was a chance of a "disorderly sovereign debt default" in the eurozone that could hit exports.

The Ministry of Trade and Industry also said weakness in the US economy was another concern for Asia's export-dependent nations including Singapore.

Its comments came as it revealed the economy grew 10 percent in the January-March first quarter from the previous three months thanks to a surge in manufacturing.

"A disorderly sovereign debt default in the eurozone cannot be ruled out at this stage," the ministry said.

"If it materialises, there will be considerable downsides for the global economy and Singapore's externally oriented industries."

The warning comes as global financial markets are rattled by fears that debt-ridden Greece could end up exiting the eurozone after a backlash against pro-austerity parties in May 6 elections.

Singapore's trade ministry said that even a rise in Asian consumer spending would not be sufficient to cushion the impact of weaker demand in the key export markets of the United States and Europe.

"In Asia, notwithstanding the support from rising domestic demand, growth will be curtailed by lacklustre export performances amidst the external headwinds," it said.

"The eurozone economies will remain weak, as ongoing fiscal austerity and bank deleveraging continue to dampen domestic demand in the region."

The ministry said Singapore's gross domestic product (GDP) grew an annual 1.6 percent in the first quarter ended March and 10 percent on a quarter-on-quarter basis.

The impressive expansion was driven by the manufacturing sector, which grew 19.8 percent on a quarterly basis, a huge turnaround from the 11.1 percent decline posted from October to December.

"This turnaround was driven by increased production across all key manufacturing clusters, notably electronics and precision engineering," the ministry said.

In a separate report, the trade promotion agency, International Enterprise Singapore (IE Singapore), said exports were up an annual 6.1 percent in the first quarter, reversing a 2.7 percent fall in the final three months of 2011.

However, IE Singapore said it was also keeping this year's growth forecast for non-oil domestic exports and total trade at between 3.0 and 5.0 percent because "uncertainties remain in the eurozone".

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Indonesia's Jokowi to speak to attorney general about Philippines death row convict
    Indonesia's Jokowi to speak to attorney general about Philippines death row convict

    Indonesia President Joko Widodo will consult with the attorney general on legal issues surrounding the case of death row convict Mary Jane Veloso, the Philippines presidential spokesman said on Monday. The statement came after the Philippines President Benigno Aquino met Widodo at the ASEAN summit in Kuala Lumpur and appealed for "humanitarian consideration" in the case. Widodo was sympathetic and was consulting with the Indonesian attorney general on the legal issues, he said. …

  • Pacquiao a national symbol of hope in Philippines
    Pacquiao a national symbol of hope in Philippines

    Emmanuel "Manny" Pacquiao is idolised by tens of millions in the poverty-afflicted Philippines both for his punching power and as a national icon of hope after rising from the streets to the pinnacle of world boxing. Known to his countrymen in the Asian archipelago as "The National Fist", Pacman fights undefeated American Floyd Mayweather on May 2 to decide who is the world's best "pound-for-pound" boxer. To most of the Philippines' population of almost 100 million, Pacquiao, winner of an …

  • Halt Indonesia drug executions until graft claims probed: Australia
    Halt Indonesia drug executions until graft claims probed: Australia

    Australia on Monday urged Indonesia to ensure all legal processes have been cleared of corruption before executing two of its nationals, as bribery allegations surfaced regarding their drug smuggling trial. Foreign Minister Julie Bishop spoke to her Indonesian counterpart Retno Marsudi on Sunday evening while Prime Minister Tony Abbott has written to President Joko Widodo to again plead for the executions to be halted. "Bali Nine" drug traffickers Myuran Sukumaran and Andrew Chan could face …

  • Pagasa: Drought may worsen
    Pagasa: Drought may worsen

    The drought in 12 already dry areas in the country is expected to worsen as the summer season peaks next month, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) warned yesterday. In an advisory, PAGASA said the provinces of Albay, Bataan, Batangas, Biliran, Cavite, Cebu, Ilocos Norte, Leyte, Misamis Occidental, Pampanga, Zamboanga del Norte and Zamboanga del Sur will continue to receive “way below” or “below normal” rainfall in May. PAGASA defines …

  • Maximum restraint for Phl troops in West Phl Sea
    Maximum restraint for Phl troops in West Phl Sea

    The military has advised its pilots conducting surveillance in the West Philippine Sea to exercise maximum restraint even if they are being bullied by Chinese troops. Armed Forces spokesman Brig. Gen. Joselito Kakilala said all actions of the pilots should be consistent with the declaration of conduct signed by claimant countries. Armed Forces public affairs chief Lt. Col. Harold Cabunoc said the Philippines should remain on moral high ground when it comes to the territorial dispute. A …

  • MMDA simulates rescue march after quake, tsunami
    MMDA simulates rescue march after quake, tsunami

    The Metro Manila Development Authority (MMDA) yesterday led the annual rescue march from Quezon City to Manila, giving rescue volunteers a glimpse of possible scenarios if the metropolis is hit by a strong quake or is inundated by a tsunami. Cora Jimenez, MMDA general manager, said 700 volunteer rescuers walked from the Quezon City memorial circle to the Bonifacio monument in front of the Manila city hall to simulate a response-exercise to a magnitude 7.2 earthquake. Renato Solidum, …

  • Islamic State threatens Mindanao, Phl tells Asean
    Islamic State threatens Mindanao, Phl tells Asean

    Foreign Affairs Secretary Albert del Rosario bared yesterday before the Association of Southeast Asian Nations (ASEAN) reports of the Islamic State of Iraq and Syria (ISIS) threat to the Philippines through the Black Flag Movement in Mindanao. Speaking before ASEAN foreign ministers, Del Rosario said the ISIS threat to Philippine security is real rather than imagined because of the Black Flag Movement’s pledge of allegiance to ISIS leader Abu Bakr al-Baghdadi. …

  • ‘Chinese reclamation affecting Phl’s energy security bid’
    ‘Chinese reclamation affecting Phl’s energy security bid’

    China’s occupation and buildup of its military structures in the West Philippine Sea and South China Sea is causing the country’s top energy official to get the jitters as the encroachment is seen as a huge dent on the Philippines’ efforts to achieve energy security. “It is a concern but if we don’t bring it to the United Nations, where will we bring it? We cannot bang heads with them,” Energy Secretary Carlos Jericho Petilla told The STAR in an interview over the weekend. The US Energy …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options