Singapore: Difficult to derail 2010 growth momentum

Macquarie Research says with increases in pharmaceutical output capacity and the strong momentum in the service sector that could cushion the fall-out, contraction previously forecast may not come to pass.

“Favourable base effects have been pointed to as a key cause for the startling strength of Singapore’s economic recovery, especially in the wake of the 18.8% YoY GDP growth in 2Q10. Such views have been further aided by the revision of the base year for GDP figures, however, this overlooks the surge in pharmaceutical output and exports in 1H10,” said Macquarie Research.

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