Excerpt from July 14 (Bloomberg) -- Singapore's economy expanded at a 26 percent annual pace in the second quarter after a record surge the previous three months, spurring the nation's currency and adding to evidence of Asia's resilience to the European crisis.
Singapore's growth for the first quarter was revised to 45.9 percent, the fastest since records began in 1975, the trade ministry said today. Gross domestic product will rise between 13 percent and 15 percent in 2010, compared with an earlier forecast of as much as 9 percent, the ministry said.
A year after Singapore exited its worst recession since independence in 1965, tourists are arriving in record numbers, companies have increased hiring and vessels are leaving the city's ports carrying more cargo. The island's strengthening economy has added to an Asian rebound that prompted central banks to raise interest rates in recent weeks, even amid concern that Europe's fiscal woes will slow the global recovery.
"Singapore will be among the fastest-growing countries not just in Asia, but the world, this year," said Song Seng-Wun, an economist at CIMB Research Pte in Singapore. "Price pressures are already evident and we expect the central bank to be watching if inflation expectations are raised because of these numbers."
Singapore's growth has already prompted the central bank to allow the currency to strengthen to temper inflationary pressures. The Singapore dollar is used instead of interest rates to conduct monetary policy.
> That said, with our interest rates taking a cue from the US, it should remain low for 'an extended period' which should in turn spur more borrowings and more foreign funds inflow. That in turn will support asset prices like equities & real estate.
> My train of thoughts might be simple, if you have differing thoughts, I welcome you to leave some comments, cheers!
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