Singapore's economy expanded less than initially estimated in the first quarter, adding to concerns growth may ease in the coming months as global demand weakens and inflation accelerates.
Gross domestic product increased an annualized 14.6 percent in the first three months of the year, less than the government's April 10 estimate of 16.9 percent, the trade ministry said in a statement today. The economy shrank 4.8 percent in the previous quarter.
Asian countries including Singapore are expecting growth to slow in the coming quarters as surging consumer prices hurt spending and demand for exports weaken. Malaysia and the Philippines, which will be releasing first-quarter economic numbers next week, are expected to report slowing expansion.
"In an environment where oil and food prices are at very high levels, the outlook is cloudy for Singapore and the rest of Asia as we head into the second half,'' said Song Seng-Wun, an economist at CIMB-GK Securities Pte. in Singapore. "Inflation is a big worry and the top priority for most governments.''
Singapore's inflation rate is quickening at the fastest pace in 26 years, prompting the central bank's decision last month to allow the currency to strengthen further.
Consumer prices rose 7.5 percent in April from a year earlier, after gaining 6.7 percent in March, the government said today. It now expects 2008 inflation to average between 5 percent and 6 percent, from a previous forecast of range of 4.5 percent to 5.5 percent.
Malaysia, Philippines
Economists surveyed by Bloomberg News expect Malaysia's growth to have slowed to 6.4 percent in the first quarter from 7.3 percent in the previous three months. Philippine growth may have eased to 5.9 percent from 7.4 percent, a separate survey showed. Malaysia will release its first-quarter data on May 28, and the Philippines the next day.
Asia is almost twice as reliant on exports as the rest of the world, with 60 percent of shipments abroad ultimately destined for the U.S., Europe and Japan. The Japanese government yesterday cut its view on exports for the first time in three months and maintained its assessment that a recovery in the world's second-largest economy is pausing.
Some Asian governments and central banks are predicting growth will be at the lower end of their targets this year, or are cutting their forecasts even as they raise estimates for inflation.
Philippine growth may have slowed to as little as 5.2 percent in the first quarter as accelerating inflation dented consumer spending, Economic Planning Chief Augusto Santos said yesterday.
Oil Prices
Rising energy and food prices are also stoking inflationary pressures and crimping domestic consumption across the region. Oil has more than doubled in the past year, and prices of grains such as rice and wheat reached unprecedented levels in 2008.
From a year earlier, Singapore's economy expanded 6.7 percent in the first quarter after growing 5.4 percent in the previous three months, the government said.
The island's manufacturing industry grew 12.4 percent last quarter from a year earlier, accelerating from a 0.2 percent gain in the fourth quarter.
Pharmaceutical production by companies such as Merck & Co. rose almost 52 percent in the first quarter from a year earlier, government figures show, offsetting faltering electronics output.
'Remain Weak'
Singapore's electronics exports have declined for 15 consecutive months and the island's central bank in April said it expects the industry to remain weak. Electronics account for about 30 percent of Singapore's manufacturing and drugs make up around 22 percent.
Singapore's trade promotion body today lowered its forecast for export growth this year to between 2 percent and 4 percent, from an earlier range of 4 percent to 6 percent. Overseas shipments rose 0.6 percent last quarter.
Services climbed 7.5 percent in the first quarter from a year earlier, while the construction industry grew 14.7 percent, according to today's report.
City Developments Ltd., Singapore's second-largest real estate company, this month said it will delay sales of new residential projects. Confidence among prospective home buyers has been eroded by the subprime-mortgage crisis in the U.S. and the contraction in global credit markets, the company said.
Singapore home sales totaled 787 units in the first quarter, about half of the 1,449 sold in the previous three months, according to the city state's Urban Redevelopment Authority. Prices rose 3.7 percent, the smallest gain in a year.
Gross domestic product increased an annualized 14.6 percent in the first three months of the year, less than the government's April 10 estimate of 16.9 percent, the trade ministry said in a statement today. The economy shrank 4.8 percent in the previous quarter.
Asian countries including Singapore are expecting growth to slow in the coming quarters as surging consumer prices hurt spending and demand for exports weaken. Malaysia and the Philippines, which will be releasing first-quarter economic numbers next week, are expected to report slowing expansion.
"In an environment where oil and food prices are at very high levels, the outlook is cloudy for Singapore and the rest of Asia as we head into the second half,'' said Song Seng-Wun, an economist at CIMB-GK Securities Pte. in Singapore. "Inflation is a big worry and the top priority for most governments.''
Singapore's inflation rate is quickening at the fastest pace in 26 years, prompting the central bank's decision last month to allow the currency to strengthen further.
Consumer prices rose 7.5 percent in April from a year earlier, after gaining 6.7 percent in March, the government said today. It now expects 2008 inflation to average between 5 percent and 6 percent, from a previous forecast of range of 4.5 percent to 5.5 percent.
Malaysia, Philippines
Economists surveyed by Bloomberg News expect Malaysia's growth to have slowed to 6.4 percent in the first quarter from 7.3 percent in the previous three months. Philippine growth may have eased to 5.9 percent from 7.4 percent, a separate survey showed. Malaysia will release its first-quarter data on May 28, and the Philippines the next day.
Asia is almost twice as reliant on exports as the rest of the world, with 60 percent of shipments abroad ultimately destined for the U.S., Europe and Japan. The Japanese government yesterday cut its view on exports for the first time in three months and maintained its assessment that a recovery in the world's second-largest economy is pausing.
Some Asian governments and central banks are predicting growth will be at the lower end of their targets this year, or are cutting their forecasts even as they raise estimates for inflation.
Philippine growth may have slowed to as little as 5.2 percent in the first quarter as accelerating inflation dented consumer spending, Economic Planning Chief Augusto Santos said yesterday.
Oil Prices
Rising energy and food prices are also stoking inflationary pressures and crimping domestic consumption across the region. Oil has more than doubled in the past year, and prices of grains such as rice and wheat reached unprecedented levels in 2008.
From a year earlier, Singapore's economy expanded 6.7 percent in the first quarter after growing 5.4 percent in the previous three months, the government said.
The island's manufacturing industry grew 12.4 percent last quarter from a year earlier, accelerating from a 0.2 percent gain in the fourth quarter.
Pharmaceutical production by companies such as Merck & Co. rose almost 52 percent in the first quarter from a year earlier, government figures show, offsetting faltering electronics output.
'Remain Weak'
Singapore's electronics exports have declined for 15 consecutive months and the island's central bank in April said it expects the industry to remain weak. Electronics account for about 30 percent of Singapore's manufacturing and drugs make up around 22 percent.
Singapore's trade promotion body today lowered its forecast for export growth this year to between 2 percent and 4 percent, from an earlier range of 4 percent to 6 percent. Overseas shipments rose 0.6 percent last quarter.
Services climbed 7.5 percent in the first quarter from a year earlier, while the construction industry grew 14.7 percent, according to today's report.
City Developments Ltd., Singapore's second-largest real estate company, this month said it will delay sales of new residential projects. Confidence among prospective home buyers has been eroded by the subprime-mortgage crisis in the U.S. and the contraction in global credit markets, the company said.
Singapore home sales totaled 787 units in the first quarter, about half of the 1,449 sold in the previous three months, according to the city state's Urban Redevelopment Authority. Prices rose 3.7 percent, the smallest gain in a year.
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