Singapore's economy has grown more slowly than forecast in the first three months of 2006, although analysts say expansion is still progressing well.
Gross domestic product (GDP) rose by an annualised rate of 1.2% in the first quarter, from 12.5% in the previous three months, the Trade Ministry said.
Analysts said that a slowdown is not unusual after such strong expansion.
They pointed out that export growth was still strong and full-year GDP figures probably would hit targets of 6-8%.
"The full-year growth target can be quite easily met," said Joseph Tan of Standard Chartered Bank.
This sentiment was echoed by Song Seng Wun, an economist at CIMB-GK Research. "Growth of 1.2% looks good, bearing in mind that we are coming off three previous quarters of very strong growth," he said.
The manufacturing sector grew by 16% in the first quarter, lifted by companies such as drugmaker Pfizer, which use Singapore as a production centre. Singapore's other key industries are electronics and transport.
Services, which account for almost two-thirds of Singapore's $118bn-economy grew by 7.6% in the quarter. Construction activity contracted, however, shrinking 0.6% in the three-month period.
[CNA reports Singapore's Q1 GDP up 9.1%]
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