Tuesday, October 13, 2015

Singapore 2015 GDP growth forecast kept at 2-2.5%, risks "tilted towards downside": MAS

Singapore 2015 GDP growth forecast kept at 2-2.5%, risks "tilted towards downside": MAS

Although full-year 2015 gross domestic product (GDP) growth estimates for Singapore have been maintained at 2-2.5 per cent, the Monetary Authority of Singapore (MAS) cautioned that "risks are tilted towards the downside".
Subdued global growth is expected to exert a drag on Singapore's external-oriented sectors in the quarters ahead, even as domestic-oriented sectors expand at a moderate pace.
Said the central bank on Wednesday morning: "Within manufacturing, the transport engineering cluster will continue to be hampered by a cutback in oil exploration activities. The weakness in IT production and its supporting industries will also persist due to sluggish final demand and ongoing reconfigurations in the electronics cluster."
"In comparison, the domestic-oriented sectors should expand at a moderate pace, underpinned by sustained demand for healthcare and education services, as well as public infrastructure spending."
MAS added that the economy is expected to expand at a "broadly similar pace" next year, with cyclical headwinds likely to persist into early 2016.
CPI-All Items inflation is forecast to come in at around -0.5 per cent in 2015, and -0.5-0.5 per cent in 2016.

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