SINGAPORE: Singapore's economy rebounded strongly in the first quarter of 2012, according to initial estimates from the Trade and Industry Ministry released on Friday.
The GDP grew by 9.9 per cent on-quarter in Q1, reversing a decline of 2.5 per cent seen in the previous quarter.
On a year-on-year basis, the economy expanded by 1.6 per cent, down from 3.6 per cent previously.
Stronger performance in the manufacturing sector has played a key role in what some economists call a "re-acceleration" of Singapore's economy.
The sector grew by 14.7 per cent on-quarter, driven by higher output in the electronics and precision engineering sectors.
Irvin Seah, economist, DBS Bank, said: "All leading external indicators for the electronics industry are pointing to a stronger growth momentum going forward in this segment. PMI numbers for all key markets are now above the crucial 50 level, implying that the manufacturing sectors for some of our key markets are in strong expansion mode."
The construction sector also grew an impressive 24.6 per cent on-quarter in Q1. This is largely due to a pick up in residential construction activities and public transportation projects.
Looking ahead to the second quarter, some economists said the stable growth in the services sector - led by the financial services and tourism industries - should help to offset any potential moderation in the manufacturing and pharmaceutical sectors.
The growth in visitor arrivals continued to boost the services sector, which grew 6.9 per cent on-quarter and 2.9 per cent when compared against the previous year.
One company that has benefited from this growth is PestBusters, which draws about 40 per cent of its revenue from servicing hotels.
PestBusters said contracts from hotels have risen by 25 per cent in the last two years.
Thomas Fernandez, chairman & CEO, PestBusters, said: "If you look at tourism and the two integrated resorts... the demand will be strong, but the main concern with SMEs is the rising cost of labour, rental, petrol and so forth."
Despite the economic recovery, some companies said rising business costs have put a lid on expansion plans.
Jason Parquet, for instance, has seen profit margins trimmed by about 5 per cent in the past year.
Jason Sim, managing director, Jason Parquet, said: "The most important (thing) is your profit margin. The economy can grow, everything can grow, but I think inflation affects a lot of Singaporeans... the only way is to charge the customer higher."
With stronger first quarter numbers, economists are likely to raise their growth projections for the year.
The official forecast for 2012 is growth of between 1 and 3 per cent.
Sorry man , i dun feel the economy is doing well , maybe for the government , yes .
Not for layman like me .
Their pocket could be fatter , but last three months , my wallet has been thinner . Most of the time .
I never believe in those media .
Just like they said AP broke record how many millions of tourists , but knnbccb among the millions , how many were from China , Indonesia , Philipinos and Vietnamese to come in for that one reason ?
These people fattened CIAS' pocket , but the money is not spinning in our economy , is drain outside of Sgp , wtf , right ?
Datas are just datas government !
Layman like me, where got time to monitor Spore economy, I'm more concern, the pax sitting in my cab, regardless of race and religious or country of origin, must pay the due fare.
Many that I had know who gave up Singapore, migrate and become 2nd class citizen in another country. Many that I had know living happily and still feel a bit regret on giving up Singapore citizenship especially when you started to have children.
No matter what kind of society or system put in place, the labyrinth of the Rich will get richer and the Poor will get poorer is alway the real fact and truth of all society, and in capitalism like Singapore, not only the facts are truth, but also very very real.
Originally posted by bowah:No matter what kind of society or system put in place, the labyrinth of the Rich will get richer and the Poor will get poorer is alway the real fact and truth of all society, and in capitalism like Singapore, not only the facts are truth, but also very very real.
come come my bros join me in motherland for retirement~~~~~