Singapore's GDP growth
Singapore's economy has been showing signs of expansion, following on from a smaller contraction in manufacturing. While there are general signs that the Asian economy in general is recovering fairly well after recent troubles, the island state seems to be enjoying a particularly fruitful time, with the local currency rising in value.
Singapore's gross domestic product rose by some 3.3% from the tail end of December 2012 and into the first quarter of the year. This is in sharp contrast to the comparable figure during the final quarter of 2012 when the economy had shrunk. According to Singapore's Trade Ministry, the GDP has expanded to an extent that mirrors its own forecasts for expansion in 2013.
A snapshot of Singapore gives a hint of the boom times that might be lying ahead for the state's residents. As office workers enjoy lunch at Lau Pa Sat Festival Market in Singapore's central business district, they are doing so in Asia's third-most expensive city to live in – and the sixth in the entire world. These figures have come from research undertaken by an Economist Intelligence Unit that ranked 130 cities across the globe.
According to one Singapore-based economist at Citigroup Inc, Kit Wei Zheng: “The leading indicators seem to point to small but modest, positive growth in 2013.”
Market recoveries in the USA and China have had a knock-on effect, improving the Singapore market. Economies as disparate as Malaysia and Thailand have also been feeling these effects, with both nations reporting encouraging GDP growth over the last quarter.
The Monetary Authority of Singapore allowed faster currency gains last year in order to try and curb price increases. It may well maintain its appreciation policy Singapore continues to struggle with the constant pressures of inflation.
Another Singapore-based economist, Vincent Conti of Australia & New Zealand Banking Group Ltd, spoke of “holding on to a three percent growth outlook for the full year, that's being driven by a better outlook for the global economy in general, particularly from the U.S., as well as China”.
Against this positive backdrop, there was further good news for Singapore money. The dollar recently rose 0.2 percent against its American counterpart.