- Economists trimmed their forecasts for Singapore’s 2016 and 2017 growth, while downgrading their views on exports as well as private consumption for this year, a central bank survey showed on Wednesday.
- The median forecast of 22 economists surveyed by the Monetary Authority of Singapore (MAS) was for gross domestic product (GDP) to grow 1.8% in 2016, down from the 1.9% expected in the previous survey published in March.
- The median forecast for GDP growth in 2017 was also lowered to 2.1%, down from 2.5% in the previous survey.
- The government expects full-year GDP growth of 1.0%-3.0% this year.
- Economists’ median forecast for non-oil domestic exports was for a contraction of 2.1% in 2016, down from the previous forecast for growth of 0.2%.
- In late May, Singapore slashed its export forecasts for this year after the trade-reliant economy barely grew in the first quarter, heightening uncertainty over the economic outlook.
- The median forecast for private consumption was cut to 2.5% growth this year, from 3.2% growth in the previous survey.
- The manufacturing sector was not expected to grow at all this year, still an improvement from the previous median forecast for a contraction of 2.7%.
- Economists also lowered their forecasts on the all-items consumer price index (CPI). However, they kept unchanged their outlook for core inflation, which is seen as the focus of the central bank’s monetary policy.