July 9, 2010 (Chinavestsor) China may have competition for the title of Asia's fastest growing economy this year and that competition comes in the form of city state Singapore, which may post GDP growth of 10.8% this year, according to the median estimate of 13 economists surveyed by Bloomberg. Singapore reports second-quarter GDP results on July 14.
Singapore has been largely dependent on electronics exports to drive its economic growth, but has taken steps to diversify its economy in recent years. The push to bolster services may sustain the economy and support investment that spurred the island’s benchmark stock index to outperform counterparts in China, Taiwan, Japan and Australia this year, according to Bloomberg.
Singapore's benchmark exchange is up 28% this year, outperforming the Shagnhai Composite, the Hang Seng and Taiwan's Taiex. Singapore's government has raised GDP estimates twice in 2010. The IMF said the last time Singapore's growth outpaced China was in 2000.
Singapore’s manufacturing increased an average 45% in the first five months of 2010, after declining an average 13% in the same period last year while pharmaceutical output doubled every month from March to May, Bloomberg reported.