Singapore Growth Outlook Unchanged

Private sector economists kept their growth forecast for Singapore intact despite increased concerns stemming from protectionism in the US, a quarterly central bank survey showed on Wednesday. According to the latest Monetary Authority of Singapore’s Survey of Professional Forecasters, the city-state’s economy is expected to expand by 3.2% this year, slowing from the 3.6% increase achieved in 2017, Nikkei reported. The growth forecast was, however, unchanged from the previous survey’s median estimate of 3.2% and at the higher end of the government’s official forecast of 2.5% to 3.5% for 2018. “Trade protectionism continues to weigh on the minds of 89% of respondents, with further escalation of trade rhetoric by the US and its trading partners, as well as implementation of announced tariffs causing concern,” MAS said in its report. “In addition, a growing number of respondents cited slower growth in China as a downside risk on the back of tightening credit conditions,” MAS added. It said its latest survey showed economists expect Singapore’s manufacturing sector to grow by 7.6% this year, slowing from 2017’s increase of 10.1%. In contrast, the finance and insurance sector is expected to grow at a faster pace of 6.7% compared with last year’s 4.8%.