Illustrative photo (Photo: travelpluto.com)
Singapore (VNA) – The Singaporean economy expanded 2.1 percent in 2015 – the slowest pace since 2008, according to the country’s Ministry of Industry and Trade (MIT).
Economists said the economy showed signs of contraction due to the impacts of the global economic recession.
Non-oil domestic exports (NODX) in Singapore fell 3.3 percent in November 2015 while trade tapered off 5.7 percent.
Production, which accounts for one-fifth of the economy, also slid 6 percent in the fourth quarter. The sector saw a drop of 4.8 percent in 2015, spurred by the decline of key exports such as semiconductor devices and mechanical products.
The country’s oil exploitation was also affected by a sharp fall in global crude oil prices.
Highlights of Singapore’s economy in 2015 were seen in construction and service sectors with a rise of 7 percent and 6.5 percent in the fourth quarter, compared with the same period of 2014, respectively.
UK Capital Economics, which provides leading independent macroeconomic research, analyses and forecasts, voiced doubts about the Southeast Asian country’s ability to maintain growth in construction amid tightened monetary policies from the Federal Reserve. It said that high lending interest rates will weaken the property market, which creates difficulties for the construction sector.
In his New Year message, Singaporean Prime Minister Lee Hsien Loong gave warnings of the contracted economy in 2016. The MIT targeted a GDP growth of between 1 and 3 percent for the year.-VNA
