Singapore’s Ministry of Trade and Industry (MTI) has this week upgraded the city-state’s 2013 growth forecast from 1 – 3% to 2.5 – 3.5% on the back of strong Q2 2013 performance.
MTI announced that the city-state has grown 3.8% on a year-on-year (y-o-y) basis in Q2 2013. This represents the strongest growth in 3 years and an improvement from 0.2% y-o-y growth recorded in Q1 2013.
Analysis by Singapore company registration specialist Rikvin shows that the new forecast will strengthen investor confidence in the city-state.
On a y-o-y basis, the financial and insurance services, construction and wholesale & retail trade sectors are the best performers in Q2 2013. The financial and insurance services industry has improved 13.1% y-o-y in Q2 2013 after growing 10.6% in Q1 2013.
The higher forecast is indicative of Singapore’s business confidence for the rest of the year. This then bodes well for entrepreneurs to register a Singapore company, given that growth in other advanced economies came in slightly weaker in comparison.
This may also assure investors to sink deeper roots in Singapore, as a way of reaching out to regional economies.”
The construction sector, on the other hand, has improved 5.1% y-o-y in Q2, albeit dipping slightly from 5.8% growth in Q1 2013. The wholesale and retail trade sector demonstrated marked improvement jumping to 5.6% growth in Q2 2013, after demonstrating 0.2% on year growth the previous quarter.
On a quarter-on-quarter (q-o-q) annualized basis, the economy grew by 15.5%, expanding from 1.7% growth in Q1 2013. The growth was led by goods producing industries such as manufacturing and construction, which showed 27.5% growth in Q2 2013.
The manufacturing sector demonstrated 32.1% q-o-q growth on a seasonally adjusted basis. In addition, wholesale and retail trade jumped from -2.6% to 22.1% q-o-q. The transportation and storage sector also grew significantly, from -9.8% in Q1 to 19.6% in Q2 2013.
Commenting further, Mr. Satish Bakhda, Head of Operations at Rikvin said, “The higher forecast is indicative of Singapore’s business confidence for the rest of the year. This then bodes well for entrepreneurs to register a company in Singapore, given that growth in other advanced economies came in slightly weaker in comparison. This may also assure investors to sink deeper roots in Singapore, as a way of reaching out to regional economies.”