Page 56 - ar2013

BY DTZ,
DEBENHAM TIE
LEUNG (SEA)
PTE LTD
INDEPENDENT
MARKET
STUDY
1.0 ECONOMIC OVERVIEW
MODERATE ECONOMIC UPTURN IN 2013, WITH BETTER-THAN-EXPECTED GDP GROWTH
OF 3.7%
Global growth remained mostly subdued in 2013. Notwithstanding the US budget sequestration
and slower growth in Mainland China, this recovery has broadly supported a moderate upturn in
Singapore’s economy in 2013.
Advance estimates by the MTI in January 2014 indicate real GDP growth was 3.7% in 2013,
compared with 1.3% in 2012. While growth in 2013 was mainly driven by the expansion of
the services producing industries, the manufacturing sector also experienced moderate
improvement. The government achieved healthy investment commitments in 2013, with 21,400
skilled jobs created and Total Business Expenditure per Annum of $7.8 billion1. Meanwhile,
inflation continued to ease from 4.6% in 2012 to 2.4% in 2013, in line with the annual average
over the past decade (2.4%).
ECONOMIC GROWTH EXPECTED TO BE ABOUT 2.0% TO 4.0% IN 2014
Notwithstanding the risks of an economic slowdown in Mainland China and further tapering
of the US stimulus programme, global economic recovery is expected to gain traction in 2014.
Consequently, the government projects GDP growth to be about 2.0% to 4.0% in 2014. Growth
is expected to be export-driven, alongside the anticipated pick-up in external demand in
trade-related industries such as manufacturing and transport and storage as well as the
fruition of key trading pacts e.g., European Union-Singapore Free Trade Agreement and
Trans-Pacific Partnership.
Amid the ongoing economic restructuring in Singapore, the government expects a steady
level of investment commitments in 2014. The government is optimistic about the growth
opportunities from capital- and knowledge-intensive investments in the manufacturing
and infocomm clusters.
Meanwhile, headline inflation is projected at about 2.0% to 3.0% in 2014.
1 All currencies are in Singapore dollars.
SABANA REIT | ANNUAL REPORT 2013
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