Daily Management Review

Singapore lowers GDP growth forecast for 2019


In January-March, GDP of the city increased by 1.2% compared with the same period last year, according to the final data of the government. A preliminary estimate of growth was 1.3%. According to revised data, in GDP grew by 1.3% Q4 2018.

The growth of the economy in the first quarter was minimal since April-June 2009, when GDP contracted by 1.7% in annual terms. Analysts polled by Reuters predicted an acceleration of growth in January-March to 1.5%.

The economic growth forecast for the whole of 2019 has been reduced to 1.5-2.5% from 1.5-3.5%.

Gabriel Lim, Permanent Secretary of the Ministry of Commerce and Industry of Singapore, said at a briefing that the slowdown in China’s economic growth and the trade dispute between Washington and Beijing are expected to put pressure on Singapore’s production, while weak global demand for electronics is already affecting the manufacturing sector.

"Against this difficult foreign economic background, a slowdown in the growth of key sectors of the Singapore economy focused on the external market is expected this year," Lim said.

Taking into account seasonal fluctuations, GDP growth in January-March was 3.8% compared with the previous quarter, which is higher than the preliminary estimate of 2% and the forecast of 2.3%.

The construction sector showed an increase in annual terms for the first time in 10 quarters.

The manufacturing sector showed the worst dynamics in quarterly terms, decreasing by 7.1% in January-March.

Against the background of worsening global conditions, Singapore also lowered its forecast for non-oil exports for 2019. Now, instead of zero growth, a decline of 2% is expected.

source: reuters.com