Economists trim Singapore GDP growth projection to 1.8% this year

Finance and insurance, as well as wholesale and retail trade sectors, will register moderate performance.

Singapore economists have cut the country's growth forecast for this year and downgraded their views on exports and private consumption.

Though the manufacturing sector has shown better performance, this has been offset by a moderate performance in finance and insurance as well as wholesale and retail trade, the economists said, according to a central bank report.

According to the 22 respondents in the latest quarterly survey by the Monetary Authority of Singapore, the Gross Domestic Product (GDP) is expected to expand 1.8 percent this year. This estimate is slightly lower than the 1.9 percent forecast which was projected in March.

However, growth is still within the mark of 1 to 3 percent official forecast. The estimate shows that the GDP can potentially grow at 2.1 percent next year.

The manufacturing sector will contribute about one-fifth of the republic's GDP. The finance, insurance as well as wholesale and retail trade sectors will expand 2.9 percent and 2.0 percent respectively. However, the previous expectation was of an increase up to 3.6 percent and 3.9 percent respectively.

The economists have also adjusted the headline inflation forecast. In the previous report. The headline consumer inflation was expected to be minus 0.2 percent, whereas now they are expecting it to be at minus 0.4 per cent.

Meanwhile, the core inflation remains unchanged from the previous survey, which was expected to be at 0.8 per cent. Core inflation excludes accommodation and private road transport costs.