Singapore’s Ministry of Trade and Industry published its revised forecast for the county’s GDP growth in 2011. According to the report the overall growth is expected to reach 5% instead of 6% expected previously.
The forecast was downgraded because of the revised data for Q2 2011, when the GDP nearly hit the zero level. Singapore’s GDP for Q2 (y/y) declined by 6.5% down to the lowest level seen in 5 years.
While giving comments on the situation, the ministry pointed out a production decline in biomedicine, electronics and other industries. The overall decline in the country’s manufacturing production reached 5.9% in Q2 2011. The retail sales declined by 8.4%.
As for the prospects of Singapore’s economy, the report says it is useless to anticipate a full recovery in the near future as the global competition is getting tougher.
FOREX.
According to the Department of Masterforex-V trading system , The Singapore dollar is rapidly losing its ground against its US counterpart. USDSGD has recently got back to the level of late 2010.
A strong rally has brought USDSGD close to the MF pivot 1,3252, which is a major level of resistance. Once the price breaks and consolidates above it, the currency pair will get an opportunity to reach another major level - 1,3395. A trend reversal can be considered only after USDSGD breaks below the MF pivot 1,2766.
