Singapore's economic growth rate slows to 1.5 % in 2012

A survey conducted by the Monetary Authority of Singapore (MAS), the city-state's central bank, showed on Wednesday that economic growth rate here is predicted at 1.5 percent, down from a median 2.4 percent in September's poll. The survey result, involving economists and analysts in private sectors, was in accordance with the official forecast of Ministry of Trade and Industry at around 1.5 percent last month. "The Singapore economy expanded by 0.3 percent in Q3 2012 compared with the same period last year. This was much lower than the median forecast of 2.3 percent reported in the September 2012 Survey." the central bank said. Considering the weaker than expected real economy performance in the third quarter, the analysts forecasted the growth rate throughout 2012 will be between 1.0 percent to 1.9 percent, much lower than the 2.0 percent to 2.9 percent projected in the previous survey. The economists showed their bearish expectation for finance and insurance, wholesale and retail trade sectors, which are forecast to shrink by 0.5 percent and 0.3 percent respectively, down from the forecast of expansion of 1.1 percent and 0.6 percent in the September survey. The median forecast for growths in manufacturing and accommodation and food services sectors saw decrease from respective 2.7 percent and 3.8 percent to 1.1 percent and 3.2 percent, while analysts held the most bullish expectation in construction sector, with predicted growth rate rising from 5.6 percent to 8.9 percent. The median forecast for the city-state's fourth quarter also weakened, with growth expected to come in at 1.8 percent, down from that of 3.6 percent in last survey. As for consumer price index inflation, the median inflation forecast for 2012 rose to 4.7 percent, rising from the 4.4 percent in September, while the MAS Core Inflation, excluding accommodation and private road transport costs, was predicted at 2. 6 percent, 0.1 percentage point higher than that in the last survey. For 2013, the forecasts for GDP growth is down from 3.9 percent to 2.7 percent in the latest survey, while inflation is at 3.8 percent. The GDP estimate next year is within 1.0 percent to 3.0 percent range projected by the MTI too.