Property boom driving Singapore

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Singapore's economy grew faster than expected in the first three months of 2007, led by an ongoing property and service sector boom.

The city state's economy expanded by an annual rate of 7.6% in the first quarter, compared with the average market expectation of 6.1%.

Singapore's stock market hit a fresh record high after the data and the Singapore dollar also strengthened.

The strong property and service sectors are offsetting manufacturing weakness.

Singapore's ongoing economic expansion is in marked contrast to its regional rival Hong Kong, which saw its first quarter economic growth slow to its worst rate in almost four years.

The latest Singapore economic data "shows that the economy has become more diversified, more resilient", said Citigroup economist Chua Hak Bin.

The Singapore government has now expanded its growth forecast for 2007 as a whole by half a percentage point to between 5% and 7%.