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Last Updated: Monday, 10 October 2005, 06:18 GMT 07:18 UK
Singapore reports steady growth
Dirt bike rider jumps in front of Singapore's financial district
Despite the slowdown, Singapore's economy is on the up
Singapore's economy has continued to grow - albeit more slowly than expected - in the third quarter, driven by its shipping and medical industries.

Gross domestic product (GDP) increased by an annualised rate of 3.2% in the three months from July to the end of September, the Ministry of Trade said.

That was down from an annualised growth rate of 18% in the previous quarter. GDP was up 6% year-on-year.

Analysts said growth was still on track as a slowdown had been expected.

"The economy is still plodding along," said Song Seng Wun, an economist at Cimb-GK.

Growth was "quite respectable, considering the high base in the second quarter", said Suan Teck Kin, an economist at OCBC Bank.

'Blockbuster'

Singapore's growth has varied wildly this year, with the economy shrinking at an annualised rate of 5.5% in the first three months of 2005.

The government has predicted that the growth for the whole year will come in between 3.5% and 4.5%.

Singapore is benefiting from a pick-up in manufacturing as companies boost production and invest in new plants to meet increased demand.

The Ministry of Trade report showed that manufacturing grew by 10% in the third quarter, driven by the biomedical, transport engineering and chemical sectors.

Services expanded by 5.1%, while construction dropped by an annual rate of 0.7%.

"The manufacturing sector is basically the blockbuster here," said OCBC's Mr Kin. "Going forward I think the numbers should be pretty steady."


SEE ALSO:
Singapore returns to rapid growth
11 Jul 05 |  Business
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18 Apr 05 |  Asia-Pacific
Drug sector hits Singapore growth
11 Apr 05 |  Business


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