Singapore ups growth targets for 2007

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SINGAPORE, Nov 19 (AFP): Singapore today raised 2007 growth targets to 7.5-8.0 per cent from 7.0-8.0 per cent after the economy grew at a faster pace in the third quarter on the back of a strong performance in the financial and construction sectors.
In the three months to September, gross domestic product (GDP) grew an annual 8.9 per cent, faster than the 8.7 per cent in the previous quarter, the ministry of trade and industry said.
On a seasonally adjusted quarter-on-quarter annualised basis, the economy grew 4.3 per cent from 14.5 per cent in the June quarter.
While the September quarter was below government estimates of 9.4 per cent, the ministry said average growth in the first three quarters of 2007 was 8.1 per cent and the momentum was set to continue for the rest of the year.
"Economic growth picked up pace in the third quarter," the ministry said in its review of the three months to September.
Singapore's economy, valued at 210 billion Singapore dollars (146 billion US) in 2006, is highly dependent on external trade which means the city-state is vulnerable to any slip-ups in the world's major markets.
For 2008, the ministry has also raised its growth targets from 4.0-6.0 per cent to 4.5-6.5 per cent but cautioned external risks such as the troubled US subprime mortgage and high energy costs may slow the economy.
"If the subprime problems worsen and persist, or if oil prices rise further above current levels, there could be a sharper and more protracted slowdown in the US economy," the ministry said.
"This could drag Singapore's GDP growth towards the lower half of the forecast range," it said.