SG Economy (Breaking News):

S’pore economy grew a blistering 19.3% yoy in the 2Q, its highest on record, as manufacturing output surged 45.5% driven by robust expansion of the biomedical and electronics clusters. GDP rose a revised 16.9% yoy in the 1Q. Given the better-than-expected GDP data, MTI has upgraded its 2010 growth forecast to 13-15% from 7-9% previously. This puts S’pore on track to be the fastest growing economy in the world in 2010, surpassing even that of China.

Supporting the growth trend, S’pore June non-oil exports grew 28.7%, faster that the 26.1% consensus estimate largely due to 29.8% jump pharmaceutical exports. Growth seen in all sectors. Exports to the US were unchanged after rising 28.9% in May. Shipments to the EU rose 75.1% yoy following a 5.7% rise in the previous month while exports to China grew 38.5% after gaining 63.3% in May. Electronics exports grew 43.9% on year, while non-electronic shipments rose 21.0%.

S’pore shares are likely to get a boost from another firm session on Wall Street and S’pore’s spectacular 2Q GDP growth of 19.3% and upgraded 2010 growth forecast of 13-15%. The bullish GDP numbers have not been fully factored by investors as earlier poll has tipped 2Q GDP to expand by 16.5%. Blue chips considered proxies to S’ore's economy expected to outperform - banks, SPH, City Dev, KepCorp, Sembcorp, Venture.