Singapore GDP enjoys 6 per cent growth

Singapore's trade-driven economy grew at an annualised rate of 6.0 per cent in the third quarter, well above market forecasts, data showed today, leading the central bank to leave monetary policy unchanged.

The annualised rise from the previous quarter compared with 2.0 per cent growth forecast by economists in a Reuters poll.

"I think the consensus was a little too pessimistic due to the weak trade and production figures in August," said Song Seng Wun, an economist at CIMB-GK Research.

The third quarter growth rate followed a revised annualised and seasonally adjusted 3.4 per cent expansion in the second quarter.

From a year earlier, gross domestic product (GDP) was 7.1 per cent higher in the third quarter, the Ministry of Trade and Industry said in its advance estimate for the quarter, against the 6.2 per cent forecast by economists.

In a widely anticipated decision, Singapore's central bank said in its bi-annual statement that it would leave its policy of a gradual, modest appreciation of its currency -- in place since April 2004 -- unchanged.

Market participants had widely expected the Monetary Authority of Singapore (MAS) to retain its modest tightening stance, keeping a hawkish watch over inflationary pressures.

Singapore's manufacturing sector, which makes up about one-quarter of all economic activity, grew 10.0 per cent from the previous year.

- REUTERS