Interest rates remain lower
than those in the US (Figure 3.29.5). Money supply growth moderated
to 7.2% from 10% the previous year as economic activity slowed. Credit
expansion decelerated, with credi...
t to the private sector expanding by 17%
in 2012, down from 30% in 2011.
Fiscal and macroprudential measures were tightened in 2012 to
complement the central bank’s contractionary stance and discourage
speculation in the property market. Stamp duty tax on property
purchases were raised from 10% to 15% for foreigners, and introduced at
5% for permanent residents; the loan-to-value ratio for mortgages was
lowered from 60% to 50% for a second property.
The government’s fiscal position remained strong in FY2012 (ended 31
March 2013) with revenue performing well and the overall fiscal surplus
reaching 1.1% of GDP, almost the same size as in FY2011. Stamp duty
collections were buoyed by the strong property market, and receipts
from vehicle quota premiums swelled in response to government-
imposed supply restrictions (Figure 3.29.6). Development expenditures
expanded by 6%, reflecting higher spending on health, education, and
transportation. Current expenditure contracted slightly, though the
FY2012 budget introduced income support for households and financing
facilitation for firms to ease the burden from economic restructuring.
Over the years, the economy has maintained a strong trade balance,
with the current account surplus averaging more than 20% of GDP. In
2012, however, the current account surplus eased to 19% of GDP from 23%
in 2011 as the surplus declined for both the trade balance and the services
account. Overall, the balance of payments posted a surplus of 8% of GDP,
up from 5% in 2011, largely due to a narrower deficit in the capital and
financial account. Singapore maintains a strong external position, with
international reserves covering 8 months of merchandise imports.
---------- Economic prospects ---------
GDP is forecast to grow by 2.6% in 2013, near the upper bound of the
government’s estimate of 1%–3%, and by 3.7% in 2014 (Table 3.29.1). For
the rest of the decade, the Ministry of Trade and Industry projects GDP
growth to be 3%–4%, which is a marked slowdown from the 6% average
growth from 2000 to 2010.
Source: CEIC Data Company (accessed 14 March 2013) - http://www.ceicdata.com/#
Never miss a thing with our weekly newsletter. We'll send you the latest and greatest infographics, news and all things Visually.
Go ahead, you can always opt out anytime with just one click.
Switch to Wordpress Code
Click below to copy
Get Notified of New Infographics
Thank you for subscribing to the Visually newsletter.
Just one last thing: we've sent you an email asking you to confirm your subscription.
Tell your story visually before December 31st and get a free iPad Air!*
The holidays are a great time to tell your brand story. From Black Friday trends and Mobile Shopping guides to the Best and Worst Times to Book Travel and Thanksgiving etiquette, the Visually team will help you craft your brand's unique stories and raise your social profile during the noisy holiday season.