Singapore 2019 Growth Forecast Lowered Again
Singapore’s growth outlook for 2019 has been lowered again – this time, to 2.5% – a slightly decrease from the earlier forecast of 2.5%.
The forecast can be found in the Monetary Authority of Singapore’s latest quarterly survey of private sector economists and analysts, which was released on Wednesday (March 13).
Economists expect a decline for sectors like manufacturing, finance and insurance, wholesale and retail trade, and accommodation and food services. However, the sentiment for construction is beamingly positive, with a growth estimate of 2.1%, up from 1.5% in December.
Despite expectations of slower growth, respondents noted that an easing of US-China trade tensions could lead to a stronger than expected growth in Singapore.
On the other hand, increased trade protectionism – listed as the top concern among respondents – is expected to adversely affect the Singapore economy. The biggest follow-up concern by respondents is a further slowdown in China.
On the upside, respondents expect the unemployment rate to inch up to 2.2% by the end of the year, a slight increase from 2.1% in the last survey.