Singapore economy expanded 17.9% in H1

Singapore’s economy expanded less than previously estimated in the first half of 2010 and growth may “moderate” in the coming months, Prime Minister Lee Hsien Loong said.

The Southeast Asian nation’s gross domestic product rose 17.9 percent in the six months through June from a year earlier, Lee said in a televised National Day message in Singapore late Sunday. That compares with a record 18.1 percent pace reported in July. The economy may grow 13 percent to 15 percent in 2010, Lee said, reiterating an earlier forecast.

The island is in the running to be the world’s fastest- growing economy in 2010 amid an Asian rebound that has prompted neighbors including Malaysia and India to raise interest rates and Singapore to revalue its currency. Still, manufacturing growth slowed in June as Europe’s sovereign-debt crisis and slowing U.S. growth threatened the global recovery.

“Risks remain in the world economy, especially in Europe and the U.S.,” Lee said. “The global financial system is not fully mended. If the world economy turns bad, we will be buffeted. We need to stay vigilant and watch the developments worldwide.” 

(Bloomberg)


Egypt asks Russia to delay wheat delivery

Egypt, the world’s biggest wheat importer, has asked Russia to reschedule the shipment of 540,000 tons of wheat at prices agreed upon before a grain export ban, the Egyptian Trade Ministry said Sunday.

Egypt sent the Russian Minister of Trade a letter stating that the two countries signed the contracts before the export ban that takes effect from Aug. 15 until Dec. 31, Trade Minister Rachid Mohamed Rachid said in the statement.

“We are suggesting the forming of a joint committee to discuss the rescheduling of the agreed-upon amounts after the lifting of the export ban,” Rachid said. “We are requesting the agreed-upon price be upheld once these shipments can be made.”

The export ban by Russia, which supplies Egypt with more than half of its imported wheat, has no immediate effect on Egypt, and the North African country has enough supplies for subsidized bread for four months, Rachid said. 

(Bloomberg)

Japan’s current account surplus falls sharply

Japan’s current account surplus unexpectedly shrank for a second month in June, a sign the recovery in the world’s second-largest economy is losing momentum.

The gap fell 18 percent to 1.047 trillion yen ($12.3 billion) from a year earlier, the Ministry of Finance said in Tokyo Monday. The median estimate of 21 economists surveyed by Bloomberg News was for 1.3 trillion yen.

Monday’s report adds to the evidence that a diminishing impact of stimulus measures and cooling global demand are taking a toll on Japan, whose recovery from recession was driven by exports. The yen rose to an eight-month high last week and the currency has risen to a level Honda Motor Co. Chief Financial Officer Yoichi Hojo says will be “very difficult” to cope with over the long term.

“Weakening exports are crippling the current account surplus,” Hiroshi Shiraishi, an economist at BNP Paribas in Tokyo, said before the report. “Japan’s slowdown will become clearer as the effects of economic measures fade and overseas demand wanes.” 

(Bloomberg)