Singapore’s economy will experience “modest” expansion this year as a tight labor market constrains some industries amid improving global demand, the government said after growth exceeded initial estimates last quarter.
The city state maintained its 2014 growth and export forecasts even as manufacturing gains helped gross domestic product rise an annualized 2.3 percent in the three months through March from the previous quarter, more than an April estimate of a 0.1 percent expansion, a report showed today.
Singapore is nearing the midpoint of a 10-year economic transition strategy to reduce its dependence on cheap overseas workers while attracting new industries such as research and development. The Southeast Asian nation, whose trade-dependent economy is vulnerable to fluctuations in global demand, expects recoveries in the U.S. and Europe to support growth even as China’s expansion cools, the trade ministry said today.
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