Page 46 - Sabana REIT Annual Report 2012 (Final Version with added cha

INDEPENDENT
MARKETBy DTZ Debenham Tie Leung (SEA) Pte Ltd
1.0 Economic Overview
1.1 Gross Domestic Product Growth and Inflation
Continued weakness in the external environment due to the Eurozone sovereign debt crisis as well as
uncertainty from the fscal situation in the US affected Singapore’s economy in 2012.
Advance estimates by the Ministry of Trade and Industry (“MTI”) in January 2013 indicate real Gross Domestic
Product (“GDP”) growth was 1.2% in 2012, compared with 4.9% in 2011. Meanwhile, infationary pressures
in Singapore eased to an average of 4.6% in 2012 compared with 5.2% in 2011 (Figure 1.1).
Figure 1.1: Real GDP Growth and Infation Rate
Source: MTI, MAS, DTZ Consulting & Research, February 2013
Although the global economy is expected to remain sluggish in 2013, some pockets of strength in
domestic-oriented sectors e.g., transport engineering and construction will provide some support to
Singapore’s economy. The overall growth outlook is cautiously positive, with GDP growth expected
to be between 1.0% and 3.0% in 2013, while infation is expected to be at 3.5% to 4.5%.
16
14
12
10
8
6
4
2
%
-2
Average GDP Growth between 2002 and 2011: 6.4%
Average Infation Rate between 2002 and 2011: 2.1%
3.5% to 4.5%
1.0% to 3.0%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 F
Real GDP Growth Infation Rate
44 SABANA REIT Annual Report 2012