Singapore’s gross domestic product (GDP) expanded by 15.5 per cent on a year-on-year basis in the first quarter of this year, it was announced here today.
However, the Trade and Industry Ministry continued to adopt a cautious outlook, maintaining the economic growth forecast for 2010 at 7 to 9 per cent.
The economy grew by 38.6 per cent on a quarter-on-quarter seasonally-adjusted annualised basis, the ministry said, adding that the strong momentum was broad-based, led by the manufacturing sector.
The ministry remained cautious, influenced by the heightened market anxiety over the possibility of a sovereign debt default in Europe.
It was also concerned over the excessive asset price inflation in emerging Asia. Sharp asset price corrections would be implemented if investor sentiments wane or more monetary tightening measures are introduced, the ministry said.
"If these risks materialise, they could affect global recovery and impact Singapore negatively," it said.