Private sector economists lower Singapore’s GDP to 2.5% for 2019
In the report, a step down in manufacturing, finance and insurance, wholesale and retail trade, and accommodation and food services sectors were offset by a stronger improvement in the construction sector.
Private sector economists have lowered the growth expectations for Singapore this year to 2.5% from 2.6% previously, a survey of professional forecasters by the Monetary Authority of Singapore (MAS) revealed on Wednesday.
In the report, a step down in manufacturing, finance and insurance, wholesale and retail trade, and accommodation and food services sectors were offset by a stronger improvement in the construction sector.
The survey, which polled 23 private sector economists and analysts, reflected a mean distribution reading for Singapore to be between 2.0% and 2.9% this year, in contrast to a 2.5% to 2.9% range in the December survey, which showed a higher probability.
For the first quarter, year-on-year growth is expected to expand by 1.9%. A weaker-than-expected fourth quarter had caused the final quarter of the year to expand by 1.9%, lower than the 2.4% forecast in the earlier survey in December.
For this year, the majority of respondents said an easing of trade tensions between China and the United States could contribute towards a stronger-than-expected growth performance for Singapore.
Stronger growth in China resulting from fiscal and monetary stimulus could lead to an improvement in Singapore’s performance, the respondents said. A pause in monetary policy tightening in developed economies could also provide as a relief.
Meanwhile, trade protectionism continues to remain a downside to growth. A rise in global interest rates and a hard landing in China are other potential risks to the Singapore economy, the survey showed.
Headline inflation up 1.1%, core inflation at 1.7%, for 2019
For this year, headline inflation and core inflation - an indicator which excludes accommodation and private road transport costs – are forecast to come in at 1.1% and 1.7%, respectively, lower than the 1.3% and 1.8% in the previous survey.
For 2020, Gross Domestic Product (GDP) is expected to reach 2.4% while headline and core inflation are expected to be higher than this year, at 1.5% and 1.7%.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
