Recent_Economic_Developments

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2009 2010

Q3 Q4 Full Year Q1 Q2

Real Sector

Real GDP Growth, y-o-y % 1.8 3.8 -1.3 16.9 18.8

Real GDP Growth, q-o-q SAAR % 11.1 -1.0 - 45.7 24.0

Index of Industrial Production, y-o-y % 7.5 2.4 -4.2 38.1 46.2

Non-oil Domestic Exports, y-o-y % -7.8 8.2 -10.6 23.1 27.6

Labour Market and Prices

Unemployment Rate, SA, % (Average) 3.3 2.3 3.0 2.2 2.3CPI Inflation, y-o-y % -0.3 -0.8 0.6 0.9 3.1

Wage Growth, y-o-y % -3.0 -1.6 -2.6 3.7 5.8

Highlights:

The Singapore economy continued on a robust expansion pathDomestic economic activity expanded by 24.0% q-o-q SAAR in Q2 2010, following arecord surge in the previous quarter. Growth was driven by the trade-related sectors,particularly manufacturing, on the back of strong biomedical and electronics output.

Meanwhile, the services sector posted broad-based growth, led by tourism-relatedactivities.

Global growth will slow for the rest of this yearThe G3 economies turned in a mixed performance in Q2 2010, while Asianeconomies posted strong growth rates. Nonetheless, forward looking indicators, suchas Purchasing Managers Indices, point to a slowdown in the pace of global economicactivity in the second half of the year.

Singapores GDP growth is forecast to come in between 13% and 15% in 2010After a strong and sustained recovery in Q2 2010 during which GDP surged by 24%

from its trough, the Singapore economy is expected to slow in the coming quarters,alongside tepid growth in the G3 economies and some easing in Asian growth.

Headline CPI inflation is expected to average between 2.5% and 3.5% in 2010Private road transport costs and global oil prices will remain the major contributors toyear-on-year CPI inflation for the rest of 2010. Other domestic sources of inflationcould also pick up as business costs increase.

1 Sep 2010Recent Economic Developments in Singapore

____________________________

Note: Labourmarket statistics are obtained from the Ministry of Manpower, while trade and index of industrial production (IIP) data are

provided by IE Singapore and the EDB respectively. All other data in this document are obtained from the Building and ConstructionAuthority, Department of Statistics, Ministry of Trade and Industry, unless otherwise stated.


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A. Macroeconomic Overview

G3 economies: A general slowdown in activity

The G3 economies turned in a mixed performance in Q2 2010. GDP growth wasweaker than expected in the US and Japan, although it unexpectedly strengthened

in the Eurozone.

In the US, GDP growth slowed to 1.6% q-o-q SAAR in Q2 2010, from 3.7% in the

preceding quarter. Continued expansion in personal consumption expenditure

(2.0% q-o-q SAAR) and more encouragingly, gross private domestic investment

including inventory accumulation (25% q-o-q SAAR), contributed to Q2 growth.

However, growth was weighed down by an acceleration in imports relative to

exports, which subtracted 3.4%-points from overall GDP growth.

In Japan, GDP growth decelerated

sharply to 0.4% q-o-q SAAR in the

second quarter of this year, from 4.4%

in Q1. The lacklustre growth was due

to stagnant private consumption

spending, while corporate capital

spending grew by a mere 1.9%, the

slowest in the three quarters. Export

growth also slowed down this quarter.

Growth softened in the US and Japan but came

in better than expected in the Eurozone

Source: Datastream

The Eurozone economies surprised on the upside in Q2, with GDP growth rising to

3.9% q-o-q SAAR, up from 0.8% in Q1, boosted significantly by a robust 9%

expansion of the German economy. The Eurozone expansion, however, remained

uneven, with some peripheral economies, such as Greece, contracting markedly

(-5.8%).

Meanwhile, headline CPI inflation for the G3 economies came in at 1.3% y-o-y in

Q2, unchanged from the previous quarter. Core inflation which excludes food

and energy continued to slow in the US and Eurozone, and contracted in Japan,

generally reflecting the negative output gaps in these economies.

2000 2002 2004 2006 2008 2010

-15

-10

-5

0

5

10

Q

OQSAAR%Growth

Japan

Eurozone

Real GDP Growth

US

Q2


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Regional economies: Mild deceleration in Q2

Asia ex-Japan 1 enjoyed brisk rates of growth at the start of this year as the region

benefited from the upswing in the global economy and inventory re-stocking.

Exports rose strongly in H1 on a year ago basis, although recent data suggests a

mild moderation going into the second half of the year. Domestic demand

conditions generally remained firm across Asia ex-Japan over the past few

quarters.

In China, GDP growth eased to 10.3% y-o-y in Q2 2010, following robust expansion

of 11.9% in the preceding quarter. Expansion in fixed asset investment

decelerated from 26.4% in Q1 to 25.2% in Q2 as government tightening measures,

especially in the property sector, began to take effect. In other parts of the

economy, retail sales continued to grow strongly and exports remained firm, rising

by 38.0% y-o-y in July, albeit off the recent high of 48.5% in May. Nonetheless,

with growth of imports slowing at a faster rate, the trade surplus has risen to an 18-

month high of US$28.7 billion in July.

Signs of a slowdown are also evident in many of the NIEs and ASEAN economies.

Growth in South Korea, for instance, moderated to 7.2% y-o-y in Q2, down from

8.1% in Q1. Similarly, Malaysias growth also came in slightly lower at 8.9% in Q2.

The moderation was fairly broad-based as private consumption, investment and

exports slowed. The Indonesian economy, however, accelerated slightly to 6.2% in

Q2, benefiting from a pick-up in investment spending.

Meanwhile, headline CPI inflation in Asia ex-Japan rose marginally to 4.4% y-o-y in

Q2 2010, compared to 4.2% in Q1. This largely reflected higher oil and food prices

and a narrowing of the output gap brought about by a further strengthening in

domestic economic activity.

1 Asia here comprises China, Hong Kong, India, Indonesia, Korea, Malaysia, the Philippines, Singapore, Taiwan and

Thailand.


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Singapore economy: Growth continued at a robust pace

The Singapore economy expanded by 24.0% q-o-q SAAR in Q2 2010, moderating

from the record growth rate of 45.7% in Q1. For the second consecutive quarter,GDP growth was led by the manufacturing sector, on the back of escalating

biomedical and electronics output. Meanwhile, the services sector continued to

show broad-based growth, with tourism-related industries performing particularly

well. In addition, the construction sector registered its ninth quarter of expansion,

supported by public sector projects.

Singapores growth moderated to 24.0% q-o-q

SAAR in Q2.

For the second consecutivequarter, GDP growth was led

by the manufacturing sector,

while the services sector

continued to show broad-based

growth.

i) Manufacturing Sector

Manufacturing activity rose by 60.1%

q-o-q SAAR in Q2 2010, extending the

199.1% surge in Q1.

The Index of Industrial Production

expanded by 91.2% q-o-q SAAR in Q2,

after record growth of 159.1% in Q1.

The second quarter expansion was ledby electronics production, which rose

by 32%, and stronger pharmaceuticals

output, arising from the increased

production of higher value active

pharmaceutical ingredients.

The manufacturing sector continued to expand

in Q2.

2000 2002 2004 2006 2008 2010

-20

-10

0

10

20

30

40

50

0

-20

PerCent

SAARYOYGrowth

Real GDP

Q2

2000 2002 2004 2006 2008 2010

50

100

150

200

250

100100Index

(Q12000=100),SA

Q2

IIP Electronics

IIP Non-electronics

Total IIP


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ii) Construction Sector

Activity in the construction sector

accelerated in Q2, expanding by

29.2% q-o-q SAAR after growing by0.5% the quarter before. While

residential construction declined from

its Q1 peak, this was offset by strong

growth in civil engineering works,

comprising mostly public infrastructure

projects, including the MRT Downtown

Line and Marina Coastal Expressway.

Meanwhile, non-residential

construction picked up after threequarters of decline, boosted by a spike

in public sector works.

Growth in civil engineering works led

construction activity in Q2.

Source: EPG, MAS estimates

iii) Services Sector

The services sector posted broad-based growth of 10.4% q-o-q SAAR in Q2, albeit

at a slower pace than the 17.6% growth in Q1. Growth in trade flows was firm,

benefiting trade-related services, such as transport and storage, which returned to

expansion after contracting in Q1. While the wholesale and retail trade sector

slowed considerably in Q2, this was mainly because of a 77.6% q-o-q SAAR plunge

in vehicle sales which had hurt overall retail volumes. Meanwhile, buoyed by new

activities in the tourism cluster, the other services segment surged in Q2, and the

hotels and restaurants sector maintained robust growth.

The financial sector strengthened further in Q2, registering 9.7% q-o-q SAAR

growth, up from 7.2% in Q1. The financial intermediation cluster picked up,

supported by gains in the ACU market. Domestic non-bank lending rose as well,

underpinned by resilient consumer loans and a continued recovery in business

loans. Meanwhile, some of the sentiment-sensitive industries also saw an uptick in

Q2. The performance of the forex market and the fund management industry

improved, buoyed by fresh fund inflows. In comparison, domestic stockmarket

turnover volumes fell 4.8%, weighed down by renewed uncertainty over global

recovery prospects.

2000 2002 2004 2006 2008 20100

50

100

150

200

250

300

0

Index(Q12000=100),SA

ResidentialCertified

Payments

Non-residentialCertified Payments

Q2

Civil EngineeringCertified Payments


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B. Labour Market

Net job creation was lower in Q2 2010

Total employment grew by 26,500 in Q2, lower than the 36,500 increase in Q1,partly due to the 2,400 job cuts in the manufacturing sector. In comparison, the

services sector added 27,400 workers in Q2, a level comparable to previous

quarters. Employment in the construction sector also expanded, by 1,800, after

declining by 400 in the previous quarter.

Following the rapid declines seen in the latter part of 2009, Singapores seasonally-

adjusted unemployment rates have broadly stabilised at 2.3% and 3.3% for the

overall labour force and resident labour force in June 2010 respectively.

Meanwhile, wages rose by 5.8% y-o-y in Q2 2010, higher than the 3.7% increase inthe previous quarter.

Recent surveys indicate that job

creation is likely to hold steady in Q3

2010. According to EDBs Business

Expectations Surveys, the employment

outlook for the manufacturing sector in

Q3 is largely unchanged from the

previous quarter, although the marine

& offshore engineering segment is

likely to reduce headcount due to a

lower volume of orders anticipated for

the rig-building industry. Meanwhile,

manpower demand in the services

sectors is projected to stay strong.

Employment prospects are the most

sanguine in financial services, with

almost half of the financial institutions

surveyed planning to hire.

The unemployment rate stabilised in June 2010.

C. Inflation

CPI inflation increased in Q2 2010

Headline CPI inflation rose to 3.1% in Q2 2010 from 0.9% in Q1. This was due in

part to the low base last year, as well as more broad-based price increases on asequential basis. A key contributor to the rise in inflation was private road transport

2000 2002 2004 2006 2008 2010

-30

-20

-10

0

10

20

30

40

50

60

70

80

0

-30

C

hangesinEmployment('000)

1.6

2.0

2.4

2.8

3.2

3.6

4.0

4.4

4.8

5.2

PerCent,SA

Goods Industry (LHS)

Services Industry (LHS)

Unemployment Rate (RHS)

Q2


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costs, which climbed significantly on the back of the jump in COE premiums.

Meanwhile, the MAS underlying inflation rate, which excludes the cost of

accommodation and private road transport, rose to 1.7% from 0.1% in Q1 2010.

In July, CPI inflation edged up to 3.1% after easing to 2.7% in the previous monthas private road transport costs rose again, after a brief decline in June. All other

major categories of the CPI basket also saw some price increases in line with the

improvement in domestic economic conditions.

CPI inflation averaged 2.1% in

the first seven months of 2010.

On a sequential basis, price

increases have become more

broad-based.

CPI inflation reached 3.1% in July.

CPI inflation is expected to average between 2.5% and 3.5% in 2010

Private road transport costs and global oil prices are expected to rise only modestly

from current levels for the rest of 2010. Nonetheless, they will be significantlyhigher than year-ago levels and thus would continue to be the main contributors to

headline (year-on-year) CPI inflation. Other domestic sources of inflation could

also pick up as business costs increase with continued economic growth and

tightening of the factor markets. Wage growth had turned positive in Q1 2010 while

commercial rentals are also on a recovery trend.

The CPI is expected to continue rising on a sequential basis, which, combined with

the low base, will result in increasingly higher headline inflation rates for the rest of

2010. For the year as a whole, CPI inflation is projected to be between 2.5% and3.5%. The MAS underlying inflation rate will follow a similar rising profile, but

average lower at close to 2% mainly due to the exclusion of the cost of private road

transport, which is expected to be the main contributor to inflation this year.

2000 2002 2004 2006 2008 2010

-2

-1

0

1

2

3

4

5

6

7

8

0

-2

YOY%Growth

MAS UnderlyingInflation

Overall CPIInflation

Jul


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D. Outlook

Global economy: More moderate growth ahead

The global growth momentum has eased more recently, after a fairly strong pick-upsince the second half of last year. Household spending has softened in the US,

and the Japanese economy came to a virtual standstill in Q2 2010. Forward-

looking indicators, such as Purchasing Managers Indices (PMIs) and composite

leading indices, also point to slower growth in the period ahead.

In the US, concerns have risen over the possibility of renewed weakness in the

economy. From a recent high of 60.4 in April 2010, the PMI for the manufacturing

sector has fallen to 55.5 in July as new orders and output declined. This suggests

that while industrial output will continue to expand, the rate of growth is likely to beslower in the second half. In July, non-farm payrolls contracted by 131,000 with

jobless claims on the rise. Along with such persistent weakness in the labour

market, soft consumer sentiments and tight credit conditions, growth forecasts for

the US economy have been revised downwards in recent months. The Federal

Reserve has lowered its GDP growth forecast for this year to 3.03.5% (from 3.2

3.7%), warning that household spending continued to be constrained by high

unemployment, modest income growth, lower housing wealth, and tight credit.

Similarly, the consensus forecasts for growth in 2010 and 2011 have been shaved

to 2.9% and 2.8% respectively (as at August), representing cuts of 0.4%-point and0.3%-point over the past two months.

The recent strength of the yen, as well as signs of some deceleration in its major

trading partners particularly the US and China does not augur well for the

Japanese economy, coming on the heels of its weak performance in Q2.

In the meantime, although Q2 GDP growth in the Eurozone surprised on the

upside, concerns remain as to the sustainability of the growth upturn particularly

as fiscal consolidation in a number of countries will continue to weigh on domesticdemand. Even though the Eurozone, in particular, Germany, benefited from the

improvement in the global economy in H1, and a slightly weaker currency, external

demand conditions are also likely to be less supportive going forward.

Prospects remain brighter in Asia, where a transition from public to private sector-

led growth is underway. Nonetheless, after a brisk recovery since mid-2009, in part

due to inventory adjustments and robust IT demand, the growth momentum has

started to ease. Private consumption and investment spending moderated in Q2 in

many countries along with a mild deceleration in exports. The Chinese economyslowed down in Q2 and leading indicators (including the PMI and the OECD


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leading index for China) point to a more moderate pace of economic activity in the

second half this year. Overall, GDP growth rates in Asia are generally expected to

be lower by around 1-2% points in 2011 compared to 2010 (Table 1).

Against this backdrop, inflationary pressures should be subdued in the G3, giventhe considerable slack in these economies. Indeed, market anticipation of a

normalisation of policy rates in the G3 have been pushed back as growth concerns

come to the fore. In Asia, inflationary pressures, while picking up, appear largely

contained and the process of normalisation of policy rates that started in the first

half of the year is expected to be gradual.

Table 1: Consensus Forecasts for GDP Growth

2009 Forecast2010 2011

% GrowthIndustrialUS -2.6 2.9 2.8Japan -5.2 3.2 1.5Eurozone -4.0 1.2 1.4UK -4.9 1.5 2.0

NIEHong Kong -2.8 5.6 4.6Korea 0.2 6.0 4.3Taiwan -1.9 6.8 4.3

ASEANIndonesia 4.5 5.9 6.1Malaysia -1.7 7.0 5.2Thailand -2.2 6.4 4.5Philippines 1.1 5.5 4.7

China 8.7 9.9 9.0India * 7.2 8.4 8.4

Source: CEIC and Consensus Forecasts, Aug 2010* Fiscal year starting 1 April.

IT outlook: Cooling off after exceptional growth

Following two years of decline, global chip sales are forecast to grow by 31% in

2010, and 7% in 2011, according to iSuppli. Semiconductor revenues swelled by

51% y-o-y in the first half of the year, on the back of strong consumer demand for

IT products and underpinned by the build-up of stockpiles to support demand.

Going forward, the growth rate is expected to moderate, even as revenues remain

at high levels. Some soft spots in consumer demand have also emerged.


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PC sales, which are responsible for

40% of total semiconductor

consumption, have moderated amidst

more cautious consumer sentiment in

the G3 economies. Nevertheless,underlying trends for the IT industry

remain healthy. Richer chip content in

key electronic products such as smart

phones will continue to drive growth,

while corporate IT demand could also

boost sales as companies upgrade

their ageing systems.

The pace of growth in semiconductor revenues

is set to moderate over the next few months.

Source: iSuppli

Domestic economy: Growth is expected to soften in H2 2010

After a strong and sustained recovery during which GDP surged by 24% from its

trough, the Singapore economy is expected to slow in the coming quarters,

alongside still-tepid growth in the G3 economies and some easing in Asian growth.

The cyclical impetus, which has been fuelling the global recovery thus far, is

showing signs of waning, as suggested by recent leading indicators. Indeed, fading

support from the global inventory cycle points to a slower pace of production in thecoming months. Against this backdrop, the latest monthly data shows that

Singapores non-oil domestic exports (NODX) and non-oil re-exports (NORX) have

already started to soften.

In addition, the pharmaceutical industry is projected to see a pullback in the second

half of 2010, due to major plant maintenance shutdowns, as well as a switch in

product mix, thus weighing on the manufacturing sectors output. Nonetheless, with

new activities rejuvenating the economic landscape, especially on the tourism front,

coupled with resilient regional consumption, there are sufficient supports to keepdomestic economic activity at high levels for the rest of the year. Against this

backdrop, the Singapore economy is expected to grow by between 13% and 15%

for the whole of 2010.

2009 2010 2011 Q430

40

50

60

70

80

90

US$Billion

Forecast


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E. Macroeconomic Policies

A shift in policy stance to ensure price stability over the medium term

i) Monetary Policy

The Singapore economy had

rebounded strongly from the downturn

and had been expected to continue on

its firm recovery path given the more

favourable global economic outlook

compared to that in 2009. At the same

time, inflationary pressures had been

expected to pick up, driven by higherglobal commodity prices and some

domestic costs. In anticipation of this,

MAS re-centred the exchange rate

policy band at the prevailing level of

the S$NEER in April this year. The

policy band was also shifted from that

of a zero percent appreciation to one

of modest and gradual appreciation,

with no change to its width. MAS willcontinue to be watchful over

developments in the external

environment and their impact on the

domestic economy.

In April 2010, MAS re-centred the exchange rate

policy band at the prevailing level of the

S$NEER and shifted from a zero percent

appreciation to one of modest and gradual

appreciation, with no change to its width.

ii) Fiscal Policy

Amidst the improvement in economic conditions, the government announced in late

2009 the exit strategies for the two key measures of the "Resilience Package" that

were put in place last year to help businesses and households tide over the

economic downturn. The Jobs Credit Scheme, which involves cash grants to

employers to subsidise part of their wage bills for local workers, was extended for

another six months until June 2010, but at a stepped-down rate. Similarly, while

the financing schemes under the Special Risk-Sharing Initiative (SRI) were

continued for another year until January 2011, they have been scaled back in terms

of the size and tenure of loans, as well as the share of the risk borne by thegovernment. The overall budget deficit for FY2009 came in at $0.8 billion (0.3% of

Oct Jan Apr Jul Oct Jan Apr

96

97

98

99

100

101

102

103

104

Index(3Oct2

008=100)

indicates release of Monetary Policy Statement

Appreciation

Depreciation

2008 2009 2010


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GDP), significantly lower than the $8.7 billion projected last year, on the back of

higher revenues from the better-than-expected performance of the economy and

the property market.

The focus of Budget 2010, announced on 22 February, has shifted from crisis relief-type measures towards initiatives that are targeted at restructuring the Singapore

economy in order to enhance productivity over the medium to long term. This

represents a crucial step towards implementing the recommendations charted out

by the Economic Strategies Committee (ESC) to support the economy's growth in

the next phase of its development. Budget measures were introduced to boost

investment for the future through three approaches. First, the government has

committed $1.1 billion a year over the next five years in the form of tax benefits,

grants and training subsidies to help companies and workers to innovate and

deepen their skills and expertise. Second, measures were put in place to enablecompanies to develop growth capabilities, commercialise their R&D and expand

abroad. Third, the government continues to aim at building a society where

everyone has the best opportunity to stretch their potential and enjoy a better

quality of life. In particular, the latter measures were geared towards helping the

lower-skilled workers and benefiting the lower-to-middle income households. For

FY2010, the government is expecting to run an overall budget deficit of around $3.0

billion (1.1% of GDP).

Summary of Fiscal Position

FY 2008 FY 2009 FY 2010 Budgeted

$billion % of GDP $billion % of GDP $billion % of GDP

Operating Revenue 41.1 15.4 39.5 14.4 40.7 14.7

Total Expenditure 38.1 14.3 41.9 15.3 46.4 16.7

OperatingExpenditure

28.7 10.8 30.9 11.3 33.9 12.2

DevelopmentExpenditure

9.4 3.5 11.0 4.0 12.5 4.5

PrimarySurplus/Deficit (-)

3.0 1.1 -2.3 -0.9 -5.6 -2.0

Add: NII/NIRContribution

4.3 1.6 7.0 2.6 7.8 2.8

Less: SpecialTransfers

7.1 2.7 5.5 2.0 5.2 1.9

BudgetSurplus/Deficit (-)

0.2 0.1 -0.8 -0.3 -3.0 -1.1

Note: Figures may not tally due to rounding.Source: Ministry of Finance.


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Selected Indicators

Land Area (Sq km) 710.3 Literacy Rate* (%) 96.3

Total Population ('000), 2010 5,076.7 Real Per Capita GDP (US$) 34,094

Labour Force ('000) 3,030.0 Gross National Savings (% of GNI) 45.7

Resident Labour Force Participation Rate (%) 65.4

* Refers to resident population aged 15 years and over.

COMPONENTS OF NOMINAL GDP

SECTORAL (% of GDP), 2009

COMPONENTS OF NOMINAL GDP

EXPENDITURE (% of GDP), 2009

Manufacturing 19.5 Private Consumption 40.9

Financial Services 12.2 Public Consumption 11.5

Business Services 14.1 Private Gross Fixed Capital Formation 24.3

Construction 5.4 Public Gross Fixed Capital Formation 4.4

Transport & Storage 8.8 Increase in Stocks -1.5

Information & Communications 3.9 Net Exports of Goods & Services 21.1

Wholesale & Retail Trade 17.7 Statistical Discrepancy -0.6

Hotels & Restaurants 2.2

MAJOR EXPORT DESTINATIONS

(% SHARE), 2009

MAJOR ORIGINS OF IMPORTS

(% SHARE), 2009

Total Exports (S$ Billion) 391.1 Total Imports (S$ Billion) 356.3

Hong Kong 11.6 US 11.6

Malaysia 11.5 Malaysia 11.6

China 9.7 China 10.5

Indonesia 9.7 Japan 7.6

USA 6.5 Indonesia 5.8

ASEAN 30.3 ASEAN 24.0

NIEs 19.5 EU 13.7

EU 9.5 NIEs 12.0

Source: IE Singapore

MAJOR DOMESTIC EXPORTS

BY COMMODITY (% SHARE), 2009

MAJOR IMPORTS

BY COMMODITY (% SHARE), 2009

Domestic Exports (S$ Billion) 200.0 Total Imports (S$ Billion) 356.3

Mineral Fuels 29.3 Electronics 28.1

Electronics 25.9 Mineral Fuels 25.0

Chemicals 18.4 Machinery & Transport Equipment (ex. Electronics) 19.8

Machinery & Transport Equipment (ex. Electronics) 12.1 Manufactured Goods 7.3

Manufactured Articles 7.6 Manufactured Articles 7.0

Manufactured Goods 2.7 Chemicals 6.0

Source: IE Singapore

GENERAL INDICATORS, 2009


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OVERA LL ECONOMY 2008 2009 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Jun-10 Jul-10

GDP at current prices (S$ bil) 273.5 265.1 67.5 68.0 69.9 68.2 61.2 64.2 68.7 70.9 70.7 74.9 na na

GDP (US$ bil) 193.3 182.2 47.9 49.8 50.0 45.8 40.5 43.6 47.7 50.9 50.4 53.9 na na

Real GDP Growth (YOY % change) 1.8 -1.3 7.4 2.7 0.0 -2.5 -8.9 -1.7 1.8 3.8 16.9 18.8 na na

Real GDP Growth (QOQ SAAR % change) na na 17.6 -12.5 -3.0 -9.0 -11.0 18.5 11.1 -1.0 45.7 24.0 na na

By Sector (YOY % change):

Manufacturing 1/ -4.2 -4.1 12.3 -5.6 -11.0 -10.7 -23.8 -0.4 7.6 2.2 38.2 39.2 29.5 9.9

Electronics 2/ -7.0 -8.5 3.5 -0.9 -5.4 -23.2 -36.6 -19.4 -1.2 28.0 70.0 55.9 52.8 24.5

Non-electronics

2/

-2.8 -2.2 16.4 -7.6 -13.4 -4.4 -18.4 8.3 11.8 -8.0 27.6 42.7 20.2 4.0Financial Services 5.7 1.3 14.6 7.7 3.9 -1.9 -7.6 0.7 3.5 8.5 19.1 10.2 na na

Business Services 9.4 4.5 9.8 10.8 9.6 7.4 6.2 4.0 3.7 4.2 6.6 6.4 na na

Construction 20.1 16.2 8.5 22.7 25.6 23.2 25.5 18.1 11.7 11.5 10.2 11.2 na na

Transport & Storage 2.2 -7.0 4.3 5.0 2.8 -3.2 -10.5 -10.1 -7.2 0.1 7.9 7.6 na na

Information & Communications 6.1 1.2 5.7 6.6 6.8 5.3 1.8 1.3 -0.1 1.6 2.3 2.8 na na

Wholesale & Retail Trade 3.1 -8.2 7.7 6.4 3.3 -4.7 -14.3 -11.8 -7.5 1.5 16.9 18.9 na na

Hotels & Restaurants 0.8 -1.5 2.7 1.4 -0.7 -0.1 -4.0 -4.3 0.2 2.0 7.0 10.4 na na

By Expenditure Component (YOY % change):

Consumption 3.9 2.1 5.6 5.0 4.2 0.7 -2.8 0.0 4.6 7.0 8.6 6.4 na na

Private 2.7 0.4 5.8 5.7 2.3 -2.7 -3.1 -3.2 2.1 6.0 5.9 6.7 na na

Public 8.4 8.2 5.0 1.3 12.4 15.4 -1.9 17.1 14.3 10.9 15.3 5.0 na na

Gross Fixed Capital Formation 13.6 -3.3 29.2 25.3 15.3 -9.9 -12.6 -6.1 1.1 6.0 10.6 -1.2 na na

Private 13.3 -5.9 34.8 25.6 14.1 -13.4 -16.7 - 8.5 - 0.4 4.1 9.4 - 4.3 na na

Public 15.6 17.2 -3.4 22.8 25.3 23.6 20.8 17.3 11.9 18.6 17.8 22.6 na na

External Demand 4.1 -9.0 9.7 7.3 5.1 -5.0 -17.6 -13.1 -9.1 4.8 20.0 23.3 na na

TRADE

Total Exports, fob (YOY % change) 5.0 -17.2 11.5 13.2 11.4 -12.0 -27.8 -25.4 -20.0 4.9 28.2 29.1 28.2 16.6

Non-Oil Domestic Exports -8.6 -9.9 0.6 -5.5 -8.6 -17.7 -25.6 -14.5 -7.8 8.2 23.1 27.6 28.5 18.2

Re-Exports 4.5 -15.4 10.3 15.5 8.1 -8.1 -24.1 -23.8 -17.9 1.9 24.5 24.6 28.2 20.8

Total Imports, cif (YOY % change) 14.0 -21.2 21.5 21.4 22.2 -7.1 -27.6 -28.4 -22.8 -2.7 25.5 26.4 26.5 21.7

WAGE-PRICE INDICATORS

Unemployment Rate (SA,%) 2.2 3.0 1.9 2.2 2.2 2.7 3.2 3.2 3.3 2.3 2.2 2.3 na na

Average Nominal Wages (S$ per month) 3977 3872 4316 3690 3674 4229 4155 3609 3562 4160 4310 3819 na na

Consumer Price Index Inflation (YOY % change) 6.6 0.6 6.6 7.5 6.6 5.8 3.4 0.2 -0.3 -0.8 0.9 3.1 2.7 3.1

MAS Underlying Inflation (YOY % change) 5.7 0.0 5.3 6.5 5.7 5.3 2.2 0.0 -0.7 -1.4 0.1 1.7 1.7 2.0

FINANCIAL INDICATORS 3/

S$ Exchange Rate Against: (end-period)

US Dollar 1.4392 1.4034 1.3799 1.3616 1.4314 1.4392 1.5194 1.4498 1.4141 1.4034 1.4028 1.4013 1.4013 1.3623

100 Japanese Yen 1.5924 1.5194 1.3814 1.2819 1.3732 1.5924 1.5450 1.5115 1.5752 1.5194 1.5016 1.5822 1.5822 1.5775

Euro 2.0258 2.0163 2.1807 2.1493 2.0558 2.0258 2.0153 2.0464 2.0674 2.0163 1.8789 1.7113 1.7113 1.7790

Interest Rates (end-period, % p.a.)

3-month Fixed Deposit Rate 0.39 0.25 0.42 0.41 0.41 0.39 0.32 0.27 0.26 0.25 0.22 0.21 0.21 0.203-month Domestic Interbank Rate 1.00 0.69 1.31 1.19 1.88 1.00 0.69 0.69 0.69 0.69 0.69 0.56 0.56 0.56

Prime Lending Rate 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38 5.38

Money Supply (end-period)

Broad Money, M2 (YOY % change) 12.0 11.3 11.9 7.5 10.4 12.0 11.5 12.9 11.3 11.3 8.8 7.3 7.3 7.5

Strai ts T imes Index (end-per iod) 1761.6 2897.6 3007.4 2947.5 2358.9 1761.6 1700.0 2333.1 2672.6 2897.6 2887.5 2835.5 2835.5 2987.7

YOY % change -49.2 64.5 -4.9 -15.2 -35.3 -49.2 -43.5 -20.8 13.3 64.5 69.9 21.5 21.5 12.4

GOVERNMENT BUDGET 4/

Operating Revenue (S$ mil) 41377 37872 9046 10678 11391 10261 8756 10000 10621 8495 10430 11912 na na

Total Expenditure (S$ mil) 37470 40483 12453 6710 8447 9860 13073 7874 9177 10359 14509 7888 na na

Operating Expenditure 28590 29871 10252 4502 6693 7144 10395 5269 6695 7512 11433 5346 na na

Development Expenditure 8880 10612 2201 2209 1754 2716 2678 2604 2482 2847 3077 2542 na na

Primary Surplus/Deficit (S$ mil) 3907 -2611 -3407 3968 2945 400 -4317 2126 1444 -1864 -4079 4024 na na

% of GDP 1.4 -1.0 -5.0 5.8 4.2 0.6 -7.1 3.3 2.1 -2.6 -5.8 5.4 na na

BALANCE OF PAYMENTS

Current Account Balance (% of GDP) 18.5 17.8 18.8 19.9 20.8 14.5 16.8 18.3 17.1 18.8 17.0 19.9 na na

Goods Balance 13.7 16.5 15.6 13.9 16.3 8.9 11.6 16.4 17.7 19.5 16.6 20.9 na naServices Balance 7.0 4.7 7.1 7.2 7.6 6.2 5.0 4.7 4.1 4.9 3.8 3.8 na na

Income Balance -0.7 -1.7 -2.5 0.3 -1.5 0.7 2.0 -1.1 -3.1 -4.0 -1.7 -3.1 na na

Current Transfers -1.5 -1.7 -1.4 -1.5 -1.5 -1.3 -1.8 -1.7 -1.6 -1.6 -1.7 -1.6 na na

Capital & Fin Account Balance (% of GDP) -12.6 -11.3 -1.5 -15.3 -24.9 -8.2 -25.2 -17.5 -3.9 -0.9 10.4 0.7 na na

Financial Account Balance (% of GDP) -12.4 -11.1 -1.4 -15.1 -24.7 -8.0 -25.0 -17.3 -3.7 -0.7 10.6 0.8 na na

Direct Investment 10.0 5.9 9.0 9.3 5.9 16.0 3.6 7.3 4.6 8.1 7.2 11.6 na na

Portfolio Investment -20.8 -16.6 -16.8 -21.5 -20.4 -24.6 -17.0 -14.2 -22.2 -12.8 -8.5 -10.5 na na

Other Investment -1.6 -0.5 6.5 -3.0 -10.2 0.7 -11.6 -10.3 13.9 4.0 11.9 -0.3 na na

Overall Balance (% of GDP) 6.8 6.2 17.7 6.3 -3.1 6.5 -5.8 1.6 10.2 16.9 29.8 18.3 na na

Official Foreign Reserves (US$ mil) 5/ 174196 187809 177462 176650 168802 174196 166251 173191 182039 187809 197112 199960 199960 206934

Months of Imports 6.6 9.2 7.5 7.0 6.2 6.5 6.8 7.8 9.0 9.2 8.9 8.5 8.5 8.6

Source:1/

Monthly data from Index of Industrial Production, EDB2/

Data from Index of Industrial Production, EDB3/

Straits Times Index from SGX. All other indicators from MAS.4/

Ministry of Finance5/

MAS

na: Not available

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