Private sector economists trimmed their outlook for Singapore’s economic growth for 2015, amid slower growth across all sectors of the economy, the quarterly survey released by the Monetary Authority of Singapore (MAS) revealed Wednesday (9 December).
Economists polled in the survey downgrade their previous growth forecast of 2.2 percent to 1.9 percent this year. Growth forecast for 2016 was also adjusted to come in at 2.2 percent, compared to 2.8 percent expected in the previous MAS survey published in September.
The survey also showed that economists expect GDP growth in the fourth quarter to come in at 1.4 percent year-on-year, down from 2.3 percent expected in previously.
The republic’s inflation forecast were also trimmed for next year, according to the survey. The headline consumer inflation rate was seen at 0.5 percent in 2016, down from 1.1 percent in the September survey. Core inflation was expected at 1.0 percent, down from 1.3 percent.
Economists also see the all-items consumer inflation rate at -0.5 percent this year, down from their previous expectation for -0.2 per cent, while core inflation remained unchanged, to come in 0.5 percent in 2015.
Interest rates here are also likely to edge up, economists said, with the US Federal Reserve looking to raise rates next week. With this, the survey said the three-month Sibor could hit 1.25 percent.
The republic softened its growth forecast for the year in November against the backdrop of sluggish global demand. This is despite the city-state’s faster-than-expected growth in the third quarter of the year as driven by the service industry.
The government now expects full-year economic growth in 2015 to be “close to 2.0 percent,” while growth for next year is expected to be at 1.0 to 3.0 percent.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
