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Slower GDP growth in Q2 2012

Posted by lily_lee68@yahoo.com.sg on 1:01 AM
Advance estimates show that Singapore's gross domestic product (GDP) grew by just 0.3% in April-June on a quarter-on-quarter, seasonally adjusted and annualised rate (SAAR), slowing sharply from the first quarter's 10% pace.
However, compared to a year ago, the economy is likely to expand by 2.4%, faster than the 1.6% pace recorded in the first three months of 2012.
This could be attributed to the expanding manufacturing sector, which takes up a quarter of Singapore’s GDP. The relatively better performance in the rig-building and pharmaceutical industries helped to negate the weaker performance in the electronics industry.
In addition, the Singapore economy has also benefited from a strong growth in tourism and construction sectors. The financial sector, which takes up 12% of Singapore's GDP, on the other hand, is weakening due to weakness in the equity markets.
 
Source: Singapore GDP likely slowed in Q2, possible contraction 9 July 2012


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Crude Oil Prices Rise

Posted by lily_lee68@yahoo.com.sg on 12:59 AM

Crude oil prices rise on news of a halt of production by the world's seventh largest oil producer
Norway's energy industry ordered a lockout next week that threatens to bring production to a halt in Western Europe's largest oil exporter and the world's number two gas supplier. The lockout was announced after a massive strike by more than 700 North Sea oil workers over pensions. The lockout will mean that 6,515 workers covered by offshore pay agreements will not be permitted to enter their workplaces.
·    At a time when global supplies are already being hit by an embargo on Iranian oil, halting the production of the world’s seventh largest oil exporter has caused the crude oil prices to rise.OLF, the employers’ organization, is speculating that Norway will be seen as an unreliable gas supplier. The threat of a lockout was also prompting speculation that the Norwegian government would step in, noting that the country's US$600 billion sovereign wealth fund was entirely dependent on oil revenue
Lockout threatens to halt Norwegian oil and gas output 
06 July 2012 Channel News Asia
http://www.channelnewsasia.com/stories/afp_world_business/view/1211907/1/.html

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Singapore’s real wage growth declines

Posted by lily_lee68@yahoo.com.sg on 12:55 AM

Pay rises eroded by high inflation, real wage growth 0.9% 

·         Even though the tight labour market raised wages by 6.1%, Singaporeans only enjoyed a real wage growth of just 0.9%. This was much lower than the real wage growth of 2.9 per cent workers enjoyed in 2010.Most of the wage increase was eroded by inflation. 
·    The twin scenarios of high wages and high inflation point towards a wage-price spiral but economists remain divided on this occurrence. This is because the uncertain economic conditions may cool global demand and hence, place lower pressures on wage increase.
·         Policy measures to raise real wages have been deliberated. Options such as raising absolute wages and boosting the pay of the low-wage earners have been contemplated upon. 

 
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_816919.html

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