ASEAN KEY DESTINATIONS
Analysts cut 2016 growth forecast for Singapore economy to 1.9%: MAS survey
SINGAPORE: Analysts are less optimistic about Singapore’s economy, cutting their growth forecast for 2016 to 1.9 per cent from 2.2 per cent, according to the latest quarterly survey by the MAS.
That compares with the official Growth Domestic Product (GDP) forecast by the Ministry of Trade and Industry (MTI) of 1 per cent to 3 per cent growth.
Manufacturing is now expected to contract by 2.7 per cent, worse than the 1.2 per cent contraction forecast in the previous survey. The analysts are also more pessimistic about the finance and insurance sector, with 3.6 per cent growth forecast for 2016, down from the 5.9 per cent expansion predicted in the December survey.
However, the analysts are more optimistic about the construction sector, with 2.6 per cent growth forecast, up from 1.2 per cent in the previous survey.
Looking further ahead, the analysts expect GDP to expand by 2.5 per cent in 2017.
The analysts have also cut their expectations for 2016 inflation, with the Consumer Price Index-All Items expected to come in at -0.2 per cent. That compares with expectations of an increase of 0.5 per cent in the December survey.
Core inflation, which excludes accommodation and private road transport costs, is forecast at 0.8 per cent, down from the 1 per cent in the previous survey.
The official forecast for headline inflation this year is -1 per cent to 0 per cent, with core inflation expected to come in at 0.5 per cent to 1.5 per cent.
The survey collated the views of 24 analysts who closely monitor the Singapore economy.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below