News Room - Business/Economics

Posted on 10 Aug 2009

Singapore's economy contracted 6.5pc in H1

Singapore’s economy contracted by 6.5 per cent in the first half of the year, less bad than it had feared, said Prime Minister Lee Hsien Loong.

 

The city-state had since revised up its growth projection for the year by between -4 per cent to -6 percent, Lee said in his National Day message televised tonight.

 

The republic, earlier this year had projected its gross domestic product for 2009 to shrink by 6 to 9 per cent.

 

Lee said Singapore had had a turbulent and challenging year as its economy was hit by the worst global economic crisis in its history, with exports going down by a third and manufacturing declining sharply. It produces for world markets.

 

However, the prime minister said its economy had bounced back strongly in the second quarter after it had taken several measures to cushion the impact of the crisis.

 

The republic is now in a stronger position as the global economic situation had somewhat stabilised.

 

“But it is too early to celebrate,” Lee said, adding that the outlook remained clouded as the advanced economies were not expected to bounce back soon and its own exports remained much lower than last year.

 

Lee warned that the city-state might see another wave of retrenchments later in the year.