Singapore economy grows

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Singapores economic growth in the second quarter of 2005 was much better than had been expected, according to early estimates. Preliminary data shows that Singapores economy grew by 3.9 percent in the quarter after having retracted by 5.5 percent in the first quarter when compared to the last quarter of last year. The service sector grew by 4.2 percent in the second quarter, and the manufacturing sector grew by 3.5 percent despite poor performance in May due to a good performance in April. The construction sector, however, contracted by 1.4 percent. Singapores gross domestic product expanded by 12.3 percent over the first quarter in the second quarter. The economic performance in the first quarter was the worst since the second quarter of 2003, at the height of the SARS outbreak. Analysts now believe that the economy of Singapore will grow during the second half of the year, citing as reasons an increased demand for electronics, Singapores number one export, around the world as well as a possible increase in pharmaceuticals export. This news eases earlier worries that Singapore was headed for a recession.