Singapore’s Economy Grew At Record Breaking Pace

Singapore's Ministry of Trade and Industry reported yesterday (Wednesday) that gross domestic product (GDP) grew by 18.1% in the first half of the year, expanding 26% in the second quarter from the previous three months, and 19.3% in the second quarter from the same 2009 period.

The rise is the country's biggest since record-keeping began in 1975. This has prompted the government to predict GDP will rise 13%-15% in 2010.

If Singapore were to achieve that, it will be among the fastest-growing countries in the world this year!

Let's not be too happy just yet as we can expect a strong possibility of inflation because of these numbers.

Our property prices have surpass the 1996 peak and COE prices have increased, however, the CPI is a lagging indicator. It is a dangerous period as the interest rate environment is still at a low and we will see our value of money decrease due to inflation.

So do invest wisely to avoid the effects of inflation.