Singapore

According to advance estimates, GDP growth rebounded to a seasonally adjusted annualised 16.9% q-o-q in Q108, after contracting by 4.8% q-o-q in Q407, with real growth accelerating from 5.4% y-o-y to 7.2%. The better than expected performance has gone some way towards allaying fears that a US recession will impact heavily on Singapore this year. Nevertheless, while we retain our forecast for 5.9% growth in 2008 (slowing from 7.7% in 2007), downside risks to the outlook remain. Singapore's reliance on electronics exports renders it vulnerable to a weaker global economy, while inflation continues to persist around 26-year highs.

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