News Room - Business/Economics

Posted on 21 Nov 2008

Singapore economy may shrink up to 1%pct in 2009

Singapore's economy could contract by up to 1 percent next year as a global slowdown undermines demand for exports, the government said Friday.

 

The government expects economic activity of between negative 1 percent and growth of 2 percent in 2009, the Trade and Industry Ministry said in a statement.

 

It also cut Singapore's 2008 growth forecast to 2.5 percent from 3 percent.

 

"Singapore's economy is expected to face a broad-based slowdown in 2009,'' the ministry statement said.

 

"The slowdown in international and regional trade will significantly impact our wholesale trade and the transport and storage sectors. Considerable uncertainty remains as to how deep and long this downturn will last.''

 

The economy shrank 6.8 percent in the third quarter compared to the previous quarter, more than the 6.3 percent contraction the government estimated last month, the ministry said.

 

The economy contracted 0.6 percent in the July-September period compared to the same period a year earlier.

 

The government cut its inflation forecast for next year to between 1 percent and 2 percent from between 2.5 percent and 3.5 percent, the ministry said.