What promise does 2012 hold for Singapore's Economy

2011 has gone and 2012 is here. While the past year has proven to be significant for the Singapore economy, what can we expect in the future? What promise does 2012 hold for Singapore’s economy? Will Singapore shine or will it buckle under the worsening European debt crisis?

Despite fears over a heightened economic recession in Europe, analysts have not been entirely negative about what Singapore’s position is likely to be during this year. While Singapore’s Ministry of Trade and Industry has forecast a growth of 1-3% for 2012, private sector economists have forecast a growth of 3-3.9%. The trade and manufacturing sectors will probably be the worst hit, but with a strong services sector, a firm government policy, and a heightened national productivity drive Singapore might just manage to tide over tough times.

Services sector growth

The MICE industry is one of the promising sectors for 2012. Even though 2011 was marked by economic turbulence, the bookings for corporate events and meetings by local and foreign companies in Singapore’s hotels was more than robust. In fact, MICE bookings are reported to have increased by 12-50% y-o-y and the outlook for 2012 is positive. The Tourism Board of Singapore is highly optimistic about the MICE sector in 2012 as it expects a strong demand from the Asian economies. Recent news reports also confirm that tourism receipts recorded augmented growth in 2011 with bulk of the share coming from Asia. It is likely that in 2012 tourism receipts from western markets will be subdued given the economic slowdown in these regions but business and leisure travellers from the Asian economies may positively impact the tourism industry. Growth in the tourism sector will subsequently have positive spin-offs for other sectors as well. In other words, the services sector might bode well for Singapore’s economy in 2012.

To read the full article, please visit http://www.guidemesingapore.com/blog-post/singapore-business/what-promise-does-2012-hold-for-s’pore’s-economy