Prime Minister Lee Hsien Loong said that the Singapore economy grew over 10% in the first quarter of 2006; higher than the official projection of 9.1%. Loong also said that the strong performance is expected to continue for the rest of the year. The official full-year GDP forecast is to be revised upwards from 4.6%. Last year, the economy grew 6.4%: the Monetary Authority of Singapore does not expect this year's growth to top that.
Hungary's government is to announce today alternative ways of financing the building of 14 motorway sections in its Programme Roads scheme, local broadsheet Népszabadság reported. An increase in budget deficit target this year now seems inevitable. The paper quoted Finance Minister János Veres on Saturday saying that the cabinet has abandoned its plan to take the costs of the motorways off budget, bringing accounting in line with European Union rules. Analysts estimate that this move will lead to a rise in the public sector deficit target of 1.3 to 1.5% of GDP and will cast even darker shadows over Hungary's plan to meet euro criteria in 2008 and to adopt the single currency in 2010.
Ukrainian president Victor Yushchenko does not believe that Russia will increase gas prices from July 1. Commenting on a possible price hike by Gazprom; to $230 per 1000 cubic metres on gas supplied by RosUkrEnergo; Yushchenko said: “This price is not real. We have an agreement according to which the price of $95 per 1000 cubic metres is set for five years”, Yushchenko said.
Mexican banks are in for increased competition this year both from rival banks and non-bank financial institutions, credit ratings agency Fitch said in a report. Non-bank financial players that are challenging banks are primarily non-bank mortgage lenders and also consumer and auto finance companies. Given improved balance sheets and a benign operating environment, Mexican banks will continue to benefit from the pickup in lending and overall banking activities, the agency noted. The key challenges for the financial system will be sustaining loan growth while containing non-performing loans.
Copper prices hit a new record pushed by a 4.5% rise. The red metal reached $3.426 per pound at the London Metal Stock Exchange yesterday. Average copper prices for this year reach $2.42 per pound. Demand for copper has increased since 2004, especially from Asia.
The Central Bank of Lebanon ’s governor, Riad Salameh, announced on Saturday that economic and financial indicators continued to remain positive despite the difficult political situation. Salameh said that there was no pressure on the exchange rate. The Balance of payments was in surplus by $300 million in 2005. Bank deposits growth is at 7% and foreign currency reserves at $12 billion. Lebanon 's gold reserves are over $6 billion. However, Lebanon 's economic growth rate has stagnated. GDP grew 1% in 2005 and public debt continues to remain at an unmanageable $38.6 billion.