Tag Archives: Singapore Economy

Economists cut down forecast for Singapore economy to 1.9%

Economists polled by the Monetary Authority of Singapore (MAS) are cutting down their growth forecast for the economy for 2016 from 2.2 percent to 1.9 percent, the central bank’s latest quarterly survey revealed Wednesday (16 March).

“As reflected by the mean probability distribution, the most likely outcome is for the Singapore economy to grow by between 1.0 to 1.9 percent this year, below the 2.0 to 2.9 percent range reported in the last survey,” the MAS said.

Manufacturing is now expected to shrink by 2.7 percent this year, worse than the previous median forecast of a 1.2 percent contraction compared to the same quarter last year, down from 1.8 percent forecast in the previous survey. In addition, economists also forecast a slower growth in the finance and insurance sector at 3.6 percent, compared to 5.9 percent previously.

The survey also showed that economists expect the country’s gross domestic product growth for the first quarter to come in at 1.6 percent.

But analysts expect the GDP to expand by 2.5 percent next year.

“The most likely outcome is for the Singapore economy to grow by 2.0 to 2.9 percent next year,” MAS said.

Meanwhile, in terms of currency, economists expect the Singapore dollar to trade at S$1.45 against the greenback by the end of the year.

The survey conducted by MAS received views from 24 respondents from economists and analysts who closely monitor the Singapore economy.

PM Lee doesn’t expect another dip in Singapore’s economy

Prime Minister Lee Hsien Loong said on Tuesday he does not expect another dip in Singapore’s economy.

Mr Lee was giving his assessment on the global economic outlook ahead of the Asia Pacific Economic Cooperation (APEC) meetings, which will take place in Singapore.

The prime minister noted that most countries are out of the “trough of spasm” that was experienced at the start of the year, and said Singapore is at a stable position.

That’s because of quick government response to the financial meltdown, and measures by the US to strengthen its banking and financial systems. In Asia, Mr Lee noted, China and India have helped to drive growth.

Earlier this year, some economists believed that Singapore might experience a W-shaped recovery — meaning a second dip after this initial bout of recovery.

It is the first time Mr Lee has said that he believes a second recession in Singapore is unlikely for now.

He said the preliminary 0.8 percent year-on-year economic growth in the third quarter this year was “nothing to be proud of, but something to be grateful for”. The government’s GDP forecast for the year is now at minus 2.5 to 2 percent. Continue reading