Singapore predicts sharp economic slowdown in 2012

AP News
Posted: Nov 20, 2011 8:31 PM
Singapore predicts sharp economic slowdown in 2012

Singapore warned Monday that its economy will likely suffer a sharp slowdown next year as export demand from developed countries wanes.

Gross domestic product growth will probably drop to between 1 percent and 3 percent in 2012 from 5 percent this year, the Trade and Industry Ministry said.

"Singapore's externally oriented sectors such as electronics and wholesale trade will continue to perform poorly," the ministry said in a statement. "Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies."

Singapore, an island of 5.1 million people off the southern tip of the Malay Peninsula, relies on exports, finance and tourism to maintain one of the world's highest levels of GDP per head.

Because of its high reliance on trade, Singapore is often a bellwether for the rest of Asia.

The economy grew 6.1 percent in the third quarter from a year ago and a seasonally-adjusted annualized 1.9 percent from the previous quarter, the ministry said.