Singapore GDP falls 14.6%

May 21, 2009

S'pore GDP falls 14.6%

Singapore, however, maintained its forecast for the economy to shrink by 6 to 9 per cent this year and kept its inflation outlook at between minus 1 per cent and zero. -- ST PHOTO: ALPHONSUS CHERN

SINGAPORE'S economy in the first quarter of 2009 shrank at an annualised and seasonally adjusted rate of 14.6 per cent, a smaller contraction than expected, final government data showed on Thursday.

RELATED LINKS 2009 GDP GROWTH PRESS RELEASE

The fall in the gross domestic product rate was also smaller than a drop of 19.7 per cent reported in advanced figures on April 14 and marked the fourth straight quarter of economic contraction in what the government has described as the trade-reliant island's worst-ever recession.

GDP in the first three months of the year fell 10.1 per cent from a year earlier, also less than expected and a smaller fall than 11.5 per cent reported in the earlier April data.

Since the advanced figures were released , manufacturing data for January and February has been revised up, although some analysts had pointed to weakness in the services sector.

Singapore, however, maintained its forecast for the economy to shrink by 6 to 9 per cent this year and kept its inflation outlook at between minus 1 per cent and zero.

Analysts had expected the revised data to show the economy shrank at an annualised and seasonally adjusted rate of 17.0 per cent in the first quarter and expected a contraction of 11.1 per cent from a year earlier.

Like other exporters, Singapore's economy has been hit hard by the global downturn following the slump in the US housing market and credit crunch. -- THOMSON REUTERS

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