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Close to 2.0% growth for S'pore economy this year: MTI

PropertyGuru

The Ministry of Trade and Industry (MTI) expects the Singapore economy to grow by close to two percent in 2015.

In the third quarter, the economy grew by 1.9 percent on a year-on-year basis, marginally lower than the 2.0 percent growth registered during the previous quarter, but exceedsanalysts expectations and the governments earlier estimate of 1.4 per cent.

On a quarter-on-quarter seasonally-adjusted annualised basis, the economy grew by 1.9 percent, a reversal of the 2.6 percent contraction seen in Q2.

Notably, growth in the construction sector moderated to 1.6 percent year-on-year, from 2.2 percent in Q2, mainly due to weak public sector construction activities.

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On a quarter-on-quarter basis, the sector contracted at a seasonally-adjusted annualised rate of 1.6 percent, a reversal from the 13 percent growth in the preceding quarter, said MTI.

Overall, MTI revealed that the global economic conditions remained sluggish, with full-year growth for this year likely to come in weaker than last year.

In line with the sluggish external environment, the Singapore economy grew at a slower pace of 2.2 percent in the first three quarters of 2015, compared to 3.2 percent over the same period a year ago. Growth was weighed down primarily by the weak performance of the manufacturing sector, it said.

Looking into 2016, MTI expects global growth to improve next year, supported by a strengthening of growth in the advanced economies and improvements in the most emerging market and developing economies.

Despite the expected improvement in global growth, the continued slowdown in the Chinese economy, the services-driven nature of growth in the US as well as the domestically tight labour market may mean that external demand for Singapore and the region may not witness a significant uplift in 2016.

With this, MTI expects the Singapore economy to grow at a modest pace of one to three percent next year.

Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories emailnikki@propertyguru.com.sg

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