Recovery of advanced countries stimulated Singapore second quarter to rise of 0.1%.

[Nanyang Net] Unexpectedly expanding of Singapore’s economy caused by recovery in advanced countries, together with Singapore government plans to increase labor productivity and introduction of new industries.

Singapore Ministry of Trade announced that quarterly growth of 0.1% in gross domestic product (GDP) for second quarter, first quarter growth of 1.8%.

This number is opposite poles with government announced in July, estimated to shrink 0.8%, the Bloomberg News survey of 14 economists is estimated to decline 0.3%.

The successful implementation of economic growth in the second quarter is because of the global accelerated growth to offset the rising enterprise cost. The Government plans to slow down the introduction of foreign workers, increase labor productivity and attract new industry to join in.

Most accelerated growth of United States service sector in July since December 2005, showing that the world’s largest economy is expanding pace for the second half year.

Trade Ministry also pointed out that Singapore’s second quarter economic growth of 2.4% yoy, slightly higher than the forecast growth of 2.3% by Bloomberg interviewer economists. Annual increase of 4.8% in first quarter.

However, second quarter of Singapore’s labor productivity fell by 1.3%yoy, was the first decline of productivity since second quarter of last year.

Nanyang Post quoted the Singapore Ministry of International Trade & Industry said: “This mainly drag by low labor productivity in some industries such as lodging, food, and business services industries.

Labor productivity improvement only in finance, insurance and manufacturing sector. Improvement of 1.6% and 1.1%.

The largest decrease is the hotel and food industry, business services, and construction industry, fell of 3.2%, 2.7% and 2% respectively.

Estimate down of Non-oil exports

Considering the poor performance of electronic industry in the first half year, International Enterprise Singapore expect non-oil export to shrink by 1%-2%, previously forecast increase of 1%-3%.

Total annual trade growth rate from the previous 1-3%, down to 1.5%-2.5%.
Country's non-oil exports in the first half-year reduction of 2.3%, the second quarter will be 3.4%, greater than 1% contraction in the first quarter.
Meanwhile, the second quarter increased only 2.9%, far behind the 7.2% increase in the first quarter.