Lee hopeful of GDP growth between 3 and 5% next year

Lee-hsien-loongSingapore Prime Minister Lee Hsien Loong projected GDP growth rate between 3 to 5 per cent in the coming year. Delivering his message on the eve of New Year, he said that the GDP of city-state grew 3.5 per cent during fourth quarter though it is still in negative territory at minus 2.1 per cent on year basis.

Lee expressed, "Our economy is growing again, and has recovered much of the ground since the recession began last year."

Singapore, like other economies, faced very challenging time in past one year due to very uncertain conditions of financial market in the backdrop of global financial crisis. However, the year ended with a cheerful note for Singapore economy which did more than expected in the fourth quarter.

Alvin Liew, economist, Standard Chartered Bank, said: "If we look at current trends themselves, and what happens in developed economies in the West, this is clearly not a sustainable picture. To keep a manufacturing base that high... But at the same time, as we move towards a more developed stage in economic development, we are expecting services to play a bigger and bigger role as the economy develops."

Market analysts, meanwhile, are not very optimist of significant contribution in GDP by manufacturing segment but financial services are likely to play a noticeable role in economy during the coming year.