Singapore’s economic growth to remain at 2.5%, survey

Analysts expect the Singapore economy to grow by 2.5 percent this year, unchanged from their previous forecast, according to a Monetary Authority of Singapore (MAS) survey.

For Q3 2017, gross domestic product (GDP) is expected to increase by 3.1 percent.

The quarterly survey of economists showed that the Singapore economy expanded by 2.9 percent in Q2 2017, up from the median forecast of 2.7 percent in the June survey.

The 21 respondents expect the manufacturing sector to post the highest growth rate this year at 6.6 percent, an improvement from the five percent growth forecasted previously.

However, they have slashed their growth forecast for the construction sector, which is predicted to contract by 4.2 percent, compared to the 0.2 percent growth expected previously.

Inflation is predicted to stand at 0.8 percent this year, down from the 0.9 percent forecasted previously. Core inflation, on the other hand, is predicted to stand at 1.6 percent, a slight increase from the 1.5 percent forecasted in June.

“As for the labour market, the respondents expect the unemployment rate to be 2.2 percent at year-end, lower than the previous survey,” said the report.

“For 2018, the respondents’ median expectation is for GDP growth to reach 2.5 percent.” Inflation is projected to stand at 1.4 percent and core inflation at 1.6 percent.

Meanwhile, 47 percent of the respondents cited “geopolitical uncertainty such as the North Korean stand-off” as a possible threat to the economy.

“A similar number view global trade protectionism as a potential hindrance to growth. A possible slowdown in Chinese economic activity was also a concern, for 41 percent of respondents,” revealed the survey.



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