Singapore 2005 GDP growth better than expected: Prime Minister

Singapore's export-driven economy grew by a better-than-expected 5.7 percent in 2005 and should expand at a previously forecast rate of three to five percent next year, the prime minister said on Saturday.
Lee Hsien Loong said the city-state posted broad-based growth this year thanks to a sharp rise in manufacturing output and a stronger services sector.
"Many businesses, from banks to shipyards, reported better results," Lee said in a New Year's address released to the media.
Economists said the solid 2005 growth figure could prompt the government to hold an early general election, which is not due till June 2007.
Lee said 2005's strong growth would lead to the government sharing part of its budget surplus with citizens. In February, the government announced its first budget surplus in three years.
"With good growth in 2004 and 2005, I am hopeful that in the budget for fiscal year 2006, we will again have something to share," he said. The government is due to unveil its budget in late February.
"Retail sales were brisk and the property market showed signs of improvement," Lee said, adding that Singapore drew a record 9 million tourists this year.
In October, the government raised its full-year growth forecast to 5 percent from a range of 3.5 percent to 4.5 percent, following strong third-quarter GDP results.
A Reuters poll had forecast 2005 growth at a median 5.5 percent due to strong manufacturing output, especially in the biomedical and transport engineering sectors.
"We started the year on a low note and we are ending the year on a high because all sectors bounced back," said Chua Hak Bin, an economist at DBS Bank.
"The economy has proved to be remarkably resilient. We saw an across-the-board upward swing."
Lee said Singapore's external trade grew by 14 percent in 2005, boosted by the island-state's growing network of free trade agreements. "To sustain growth, we must press on with economic restructuring. We have to continue to change and adapt, in order to stay competitive and vibrant," he said.