Fri, Aug 24, 2007 - Page 12 News List

Second-quarter economic growth recorded at 5.07%

ON THE RISE The figure was an increase from 4.7 percent growth in the second quarter of last year and 4.68 percent for the whole of last year, DGBAS said

By Kevin Chen  /  STAFF REPORTER

The nation's economy grew 5.07 percent in the second quarter with the full-year forecast at 4.58 percent, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported yesterday.

The figures were an increase from 4.7 percent growth in the second quarter of last year and 4.68 percent growth for the whole of last year, data showed.

The statistics bureau's GDP growth projection of 4.58 percent for the year is an upward revision from a forecast of 4.38 percent it made in May.

The bureau attributed the increase to a mild expansion in the global economy and the nation's continued strength in exports, it said in a statement.

The nation is expected to see economic growth of 4.47 percent and 4.6 percent in the third and fourth quarter respectively, the statement said.

That private investment grew 12.5 percent in the second quarter -- stronger than the bureau's original expectation of 2.8 percent growth -- was a result of the increased capital expenditure by semiconductor manufacturers and more capital goods imports by domestic air carriers, the bureau said.

The bureau forecast domestic investment would increase 5.7 percent this year.

Domestic consumption recovered in the first half of the year, rising 2.3 percent as a result of the ease in the credit card crisis and a higher employment rate, the figures showed.

The bureau expects an increase of 3.7 percent in domestic consumption in the second half and an increase of 3 percent this year.

Elsewhere on the economic front, exports will increase 5.5 percent this year, while imports will increase 3 percent, the bureau said.

Private consumption is expected to grow 3 percent this year and consumer prices should rise 1.5 percent, it said.

The DGBAS predicted economic growth of 4.51 percent for next year and an increase of 1.46 percent in consumer prices year-on-year.

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