The economy has picked up pace in the second quarter, with GDP expanding by 8.6 per cent year-on-year following 6.4 per cent in the previous quarter, according to data released by the Ministry of Trade and Industry on Friday.
Growth on a seasonally-adjusted quarter-on-quarter annualised basis increased to 14 per cent from 8.8 per cent in the first quarter.
Overall, the Singapore economy grew by 7.6 per cent in the first half of 2007.
Riding on the momentum of the second quarter and supported by a favourable external environment and broad-based growth across the major sectors, the economy is expected to grow by 7.0-8.0 per cent in 2007.
The previous full-year growth target was 5.0-7.0 per cent.
The improved outlook for 2007 reflects higher growth in financial and business services, manufacturing, and construction.
The driving factors underpinning the higher growth forecast are broad-based: strong global demand in the biomedical, aerospace and marine industries, robust regional demand for financial services, and a buoyant domestic property market.
Data for the second quarter showed growth being more broad-based, with the financial services and construction sectors registering double-digit growth, and the manufacturing sector remaining healthy despite a slowdown in electronics.
Financial services expanded by 17 per cent in the second quarter, up from 14 per cent growth in the first quarter, while the construction sector grew by 18 per cent, the strongest growth in almost 10 years.
Growth in the manufacturing sector picked up pace to 8.3 per cent, with strong growth in biomedical manufacturing and transport engineering more than making up for the slack in electronics.
The Ministry of Trade and Industry also raised the full-year GDP growth forecast for 2007 from 5.0-7.0 per cent to 7.0-8.0 per cent, due to a healthy external environment, and continued growth in the composite leading index and strong business expectations. Both manufacturing and services firms expect better business conditions in the coming half of the year.
Channelnewsasia, August 10, 2007