Economists raise Singapore's 2017 growth forecast to 3.3%

Economists have raised Singapore's economic growth forecast this year to 3.3 percent from an earlier 2.5 percent forecast in September.

Singapore assets under management growth declines year-on-year
Monetary Authority of Singapore (MAS) Reuters

Economists have raised Singapore's economic growth forecast this year to 3.3 percent from an earlier 2.5 percent forecast in September.

Economists also expect growth next year to be steady even as it moderates slightly with an expansion of 3 percent, according to the Monetary Authority of Singapore's (MAS) Survey of Professional Forecasters.

The Singapore economy grew 5.2 percent between July and September, the Ministry of Trade and Industry announced on November 23 as it revised its 2017 gross domestic product (GDP) forecast to between 3 and 3.5 percent, up from its initial range of 2 to 3 percent.

Since the last survey in September, respondents have lifted their forecasts for most economic indicators for 2017, including manufacturing, finance & insurance, wholesale & retail trade, private consumption and non-oil domestic exports.

"As with the September survey, 47 percent of the polled analysts believe that the electronics sector presents a strong potential upside for the Singapore economy," according to the survey.

However, geopolitical uncertainty in North Korea and the Middle East, as well as global trade protectionism, continued to be major concerns.

For next year, the respondents on average believe the economy will most likely grow between 2.5 and 2.9 percent.

They also expect inflation to pick up in 2018, with the CPI-All Items inflation projected to reach 1 percent and MAS Core Inflation to be 1.6 percent.

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