Singapore’s economy grew by 10% owing to its manufacturing sector but the “increased uncertainty” surrounding the eurozone crisis concerns the city-state.
Asia’s 10th largest economy is mainly driven by electronics and precision engineering manufacturing, accounting for 27% of gross domestic product alone.
International Enterprise Singapore, the government’s trade promotion agency reported an upturn in non-oil domestic exports from a 4.3% last month to 8.3%. About 10% of Singapore’s manufactured goods are exported to China.
However, the eurozone crisis raised concerns of “downsides for the global economy and Singapore’s externally oriented industries”. Singapore may still survive, says Barclays analysts, with a healthy growth momentum at an average of 4-5% per quarter. Total trade on a year-on-year basis rose 2.8% in April from the 0.9% contraction last month. Total exports grew 3.8%, while imports increased by 1.7%.
