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09 August 2012

9th August, Thursday




Growth forecast now capped at 2.5 per cent

Source: Business Times

The Singapore economy is now expected to grow 1.5 to 2.5 per cent this year, Prime Minister Lee Hsien Loong said Wednesday. This cuts the top end of the government's earlier 1-3 per cent forecast, while raising its bottom end by half a percentage point.

In his National Day message Wednesday evening, Mr Lee said that Singapore is "doing quite well" against a backdrop of serious economic problems in Europe and the United States, and China and India slowing down.

The economy grew 1.7 per cent in the first half, he said. Assuming no changes to 1Q GDP, this points to year-on-year growth of 2 per cent in the second quarter, marginally above the flash estimate of 1.9 per cent growth.

In his televised message, Mr Lee touched on how his government is responding to the range of issues Singaporeans face, from housing to public transport, inflation to immigration. But beyond tackling specific issues, Mr Lee now sees the need for Singapore to undertake a broader review of policies, particularly social and education ones.

"To still be a shining red dot twenty years from now, we must rethink our approaches and reinvent ourselves," he said. Core principles such as meritocracy, multi-racialism and financial prudence cannot change, but the government should review what needs to change and where bolder action is needed.


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