Singapore economy grows

Singapore's economy grew 17.9 percent in the first half of 2010, a pace likely to moderate in the second half, Prime Minister Lee Hsien Loong said on Sunday.

There are still risks facing the economies of Europe and the United States and the global financial system is yet to fully recover from the credit crisis, Lee said in a televised speech on the eve of a national day celebrating Singapore's 45th year of independence.

Lee maintained a government forecast for 13-15 percent growth in 2010, which would make Singapore one of the world's fastest growing economies.

The first-half GDP figure showed the economy expanded at a slightly lower pace in the second quarter from an earlier estimate of 19.3 percent released on July 14.

The government had earlier estimated the economy grew 18.1 percent in the first half of 2010 from a year earlier.

Lee did not provide the final second quarter growth figure.

"Growth is likely to moderate in the second half," said Lee. "Risks remain in the world economy, especially in Europe and the US The global financial system is not fully mended."

Lee also touched upon the issue of foreign workers, saying while the government will control the flow the country needed immigrants to make up for a shortage of local workers.

We will control the inflow, to ensure that it is not too fast, and not too large," Lee said. "We will only bring in people who can contribute to Singapore, and work harder to integrate them into our society. And we will make clear that citizens come first."

- Reuters