Singapore cuts growth forecast for 2008
Sunday, 10 August 2008
SINGAPORE, Aug 9 (AFP): Singapore yesterday cut its economic growth forecast this year to 4-5 per cent from 4-6 per cent as Prime Minister Lee Hsien Loong warned Singaporeans to brace themselves for a "bumpy year ahead."
Speaking on the eve of the country's national day, Lee said the economy grew 4.5 per cent in the first half from a year ago.
Based on first-quarter annual growth of 6.9 per cent, Singapore's gross domestic product likely expanded close to the government's advance estimate of 1.9 per cent in the second quarter.
"We celebrate national day this year in a somewhat guarded mood. The last 12 months have been a period of economic uncertainty worldwide," said Lee, 56, noting that the giant US economy is still facing serious problems.
"The housing crisis is adding further stress to its financial system. US consumers are spending less, and that is affecting the whole global economy. The difficulties will probably drag on well into next year before getting better."
Singapore's economy, which had initially been partly buffered by strong Asian economic growth, is now feeling the impact of America's problems as regional economies are affected, he said.
The United States is a major buyer of exports from around the world, including from Asia.
Speaking on the eve of the country's national day, Lee said the economy grew 4.5 per cent in the first half from a year ago.
Based on first-quarter annual growth of 6.9 per cent, Singapore's gross domestic product likely expanded close to the government's advance estimate of 1.9 per cent in the second quarter.
"We celebrate national day this year in a somewhat guarded mood. The last 12 months have been a period of economic uncertainty worldwide," said Lee, 56, noting that the giant US economy is still facing serious problems.
"The housing crisis is adding further stress to its financial system. US consumers are spending less, and that is affecting the whole global economy. The difficulties will probably drag on well into next year before getting better."
Singapore's economy, which had initially been partly buffered by strong Asian economic growth, is now feeling the impact of America's problems as regional economies are affected, he said.
The United States is a major buyer of exports from around the world, including from Asia.