World Economy

Singapore Growth Low

Singapore Growth LowSingapore Growth Low

Singapore’s gross domestic product growth for 2016 should average 1.6%, after expanding by 2% in 2015, Moody’s Investors Service said on Wednesday, BusinessNews reported. The credit rating agency said that its forecast is at the lower end of the Singapore government’s estimated growth range of 1 to 3%. “Growth is expected to be significantly slower than it was between 2000 and 2010, when it averaged 6.2% annually. A slowdown in external demand will remain the key drag. Industries with high exposure to global conditions, such as engineering—including marine and offshore engineering—and oil and gas, will be most affected,” Moody’s said. It said that trade-dependent Singapore is especially vulnerable to the current lackluster global trade conditions. “In particular, Singapore’s close trade and financial linkages with China (Aa3 negative), imply that the slowdown in China presents significant challenges for Singapore, particularly given the island state’s role as an international financial center in the Asia-Pacific region.”