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UNDER EMBARGO
UNTIL 12:00 BANGKOK TIME,
05:00 GMT, 6 MAY 2010
Singapore
Briefing Notes for the Launch in Singapore, 6 May 2010
Economic growth and prospects

In the Asia Pacific region, Singapore was one of the hardest hit economies by the
global financial crisis. The economy contracted by 9.4% in the first quarter of 2009,
the worst contraction recorded in the history of Singapore. The severe contraction was
mainly due to the dramatic falls in aggregate demand in Singapore’s key export
markets.

Exports dropped sharply towards the end of 2008 and continued to record double-digit
declines up to September 2009. Year-on-year monthly export growth strongly
rebounded in November (13.3%) and December (30.6%) 2009 but for 2009 as a
whole exports declined by 10.3%.

The economy started to show signs of recovery towards the second quarter of 2009.
Quarter-on-quarter annualized GDP rebounded to positive 16.2% in the second
quarter and by the third quarter, the economy escaped recession with the year-on-year
GDP recording 0.6% growth.

Singapore was able to contain the fallout from the global financial crisis through swift
government intervention. On January 2009, the stimulus package of US $13.7 billion
was approved to secure jobs, boost domestic consumption and stimulate bank lending.

GDP growth is forecast to rebound strongly by 7.0% in 2010 after having contracted
by 2% in 2009.
Inflation, monetary policy and exchange rate developments
 Inflation decelerated rapidly towards the end of 2008 as the price of crude oil and
other commodities plunged. Inflation remained depressed throughout 2009 at 0.6%
but is likely to pick up in 2010 as Singapore’s economy quickly recovers alongside
the global economy, putting upward pressure on inflation. Inflation is forecast to
increase to 2.3% in 2010.
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ESCAP’s Economic and Social Survey of Asia and the Pacific 2010 – Briefing notes: Singapore
 The Monetary Authority of Singapore maintained a zero-appreciation policy of its
target exchange rate since October 2008 due to the weakening global demand for
Singapore’s exports. However, on April 14, 2010, the Singapore’s central bank
announced a revaluation of the Singapore dollar in view of its vigorous economic
recovery and upward pressures on inflation.
Fiscal situation and perspectives
 Owing mainly to increased expenditure and weak revenue growth, the government’s
fiscal position went from a surplus of 1.5% of GDP in 2008 to a deficit of 1.1% in
2009. The deficit is expected to increase in 2010 as the government continues on
with its fiscal stimulus package. The Jobs Credit Scheme and Special Risk-sharing
Initiative will be phased out during 2010/11.
Published by the UN Economic and Social Commission for Asia and the Pacific – May 2010
Not an official document
http://www.unescap.org/survey2010
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