|Singapore slipping into recession
Singapore likely slipped into recession in the three months to December, analysts told AFP, as data showed growth in 2012 came in lower than expected.
In his New Year's message, Prime Minister Lee Hsien Loong said “growth was slower this year, at 1.2 percent,’’ which is well off the official growth forecast of 1.5-2.5 percent.
However, CIMB Research economist Song Seng Wun said the figures for the year indicate the economy shrank 3.5 to 4 percent quarter on quarter in October-December, which followed a contraction of 5.9 percent in the previous three months.
Two consecutive quarters of contraction point to a technical recession.
“It's basically just the magnitude of [the recession] rather than if,'' he said.
And Jason Hughes, head of premium client management for IG Markets Singapore, said: “It would seem that the PM's statement of 1.2 percent growth for 2012 would suggest that we've contracted in the fourth quarter which would put us in technical recession territory.’’
An official breakdown of the data will be released by the trade ministry on Wednesday.
Lee predicted grow of 1-3 percent next year.