- Singapore cut its economic growth forecast for this year to a range of 0.5% to 1.5%, citing weak external demand due to the global economic downturn.
- The Department of Trade and Industry said Friday it had cut its growth forecast from its previous forecast range of 0.5% to 2.5%.
- Gross domestic product (GDP) for the April-June quarter rose 0.5% from the same period last year, falling short of the 0.7% growth forecast announced by the government in July.
- “Singapore’s external demand outlook for the rest of the year remains weak,” the ministry said in a statement.
A panoramic view of the Central Business District and Merlion lit up with projections at iLight Marina Bay on March 29, 2018 in Singapore.
Suhaimi Abdullah | Getty Images News | Getty Images
Singapore cut its economic growth forecast for this year to a range of 0.5% to 1.5%, citing weak external demand due to the global economic downturn.
The Department of Trade and Industry said Friday it had cut its growth forecast from its previous forecast range of 0.5% to 2.5%.
Gross domestic product (GDP) for the April-June quarter rose 0.5% from the same period last year, falling short of the 0.7% growth forecast announced by the government in July.
“Singapore’s external demand outlook remains weak for the rest of the year,” he said. The ministry said in a statement.
Singapore’s economy posted marginal growth of 0.1% seasonally adjusted quarter-on-quarter, reversing from a contraction of 0.4% in the first quarter of this year, and narrowly avoided a technical recession and a second straight quarter of contraction.
Export-led manufacturing contracted 7.3% year-on-year in the April-June quarter, worse than the previous quarter’s 5.4% contraction.
“Apart from the expected slowdown in Singapore’s key foreign demand market, the global electronics recession is also likely to persist, with a gradual recovery expected as early as the end of the year,” the report said.
In particular, manufacturing output is likely to be “mainly weighed down by contraction in the electronics and precision engineering clusters, given the global electronics recession,” the ministry added.
Growth in the financial and insurance sectors is also expected to slow due to continued weakness in external economic conditions and tight financial conditions.
The government also stressed that downside risks to the global economy remained, adding that “the outlook for the rest of the year remains grim.”
These include higher-than-expected and sustained inflation in advanced economies, which could lead to tighter global financial conditions, leading to a sharp reduction in global spending.
The ministry said the risk of an escalation in the Ukraine war and geopolitical tensions between world powers could also lead to “recurring supply disruptions, lower consumer and business confidence and weighing on global trade.” Ta.
