GDP Growth Tied To Flagging External Demand

Economic Research	28 September 2016
Singapore
Economic Outlook
GDP Growth Tied To Flagging External Demand Singapore’s economy is unlikely to reverse its slowing trend in 2017. We expect GDP growth to ease to +1.4%, from an estimated +1.8% this year, dragged by subdued external demand and weak private investment. The manufacturing cluster’s recovery is likely to be short-lived, while services sector growth is set to slow due to elevated SGD strength and decreasing domestic economic activities. Inflation is projected to turn positive in 2017, boosted by a low base effect and rising oil prices. We maintain that the Monetary Authority of Singapore (MAS) would likely depress its S$NEER slope further to support the deteriorating domestic economy. Economist:  Ng Kee Chou | +603 92802179
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