2011-04-15

Singapore GDP grows by 23% QoQ

Bloomberg is reporting that Singapore's GDP grew 23% from the previous quarter, twice as much as estimated by the economists:
April 14 (Bloomberg) -- Singapore’s economy grew more than twice the pace economists estimated in the first quarter and the central bank said it would allow further gains in the currency in the third tightening of monetary policy in a year.

The Singapore dollar jumped to a record after a trade ministry report showed gross domestic product rose at an annual rate of 23.5 percent last quarter from the previous three months. That’s up from 3.9 percent in the fourth quarter, and compares with the 11.4 percent median estimate in a Bloomberg News survey of 14 economists. The central bank said separately it will allow the Singapore dollar to appreciate more.
As I moving there and hope for the best, I still wander... and ask these obvious questions:

  • How sustainable is this kind of growth? 
  • Is this real growth? Or growth fueled by massive credit growth?
Do you have the answer? Please let me know in the comment section.

2 comments:

Dave Narby said...

From this http://stockcharts.com/h-sc/ui?s=EWS:GLD&p=W&yr=3&mn=0&dy=0&id=p52646831088

I would say absent another massive deflationary event... Yes.

Their GDP growth IMO is a result of their NOT debasing their currency...

pej said...

Nice one Dave. I am nonetheless worried that credit growth is on rampage and that a real estate bubble might pop as well... I don't have hard data to back those assumptions though, just the general impression that I had when I was there a couple of months ago.