Singapore GDP rises lower than initially estimated

Singapore GDP rises lower than initially estimated 

 

 

Singapore‘s economy grew slower than first estimated in the first quarter as the government raises the inflation target for this year in response to a surge in food and energy prices.

 

The Ministry of Trade and Industry says that the gross domestic product or GDP rose 6.7 percent from a year ago, falling short of the advance estimate for 7.2 percent growth.

 

The economy rose 14.6 percent in the first quarter from the fourth.

 

This compared with an initial estimate for a 16.9 percent rise.

 

The economy is still expected to expand 4 to 6 percent this year, but the government cut its forecast for growth of key exports as external demand is expected to remain “soft” through the year.

 

Non-oil domestic exports are now expected to rise 2 to 4 percent in 2008 compared with a previous target range of 4 to 6 percent.

 

The government raised the inflation target to a range of 5 to 6 percent from a prior target of 4.5 to 5.5 percent.

 

 

In a statement, MTI says oil and food prices have risen more rapidly and are expected to remain elevated over the near term.

 

It said the revised forecast remains consistent with the earlier expectation of a moderation in inflation in the second half of the year, particularly as the impact of the GST increase wears off.

 

Singapore‘s inflation accelerated in April, extending to a new 26-year high as food and energy costs soared.

 

In a separate statement, the Department of Statistics says that consumer price index rose 7.5 percent from a year earlier after rising 6.7 percent in March.

 

April’s rise was the fastest since 1982.

 

The inflation was led by the housing component of the index, which rose 11.8 percent from a year earlier due to higher electricity tariffs and rents.

 

Source: 938Live

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