Economy

Singapore slashes 2019 growth forecast stoking recession fears

Singapore slashes 2019 growth forecast stoking recession fears”

Against this challenging external macroeconomic backdrop, and the deepening downturn in the global electronics cycle, the Singapore economy is likely to continue to face strong headwinds for the rest of the year.

In May, the MTI had lowered the full-year forecast for Singapore from an earlier growth prediction of 3.5% to a growth of between 1.5% and 2.5%. This figure already showcased a steep slowdown, against the full-year GDP growth of 3.1% marked in 2018. The median estimates in a Bloomberg survey of economists was for 3% contraction on-quarter and 0.2% growth compared to a year ago.

The government said it expected growth of 0.0-1.0 percent this year, sharply down from the 1.5-2.5 percent previously estimated, marking the second downward revision this year.

Based on MTI's statement, it is stated that on a quarter-on-quarter seasonally-adjusted annualised basis, the economy shrunk by 3.3%, a cut from the expected 3.4% contraction, but a reversal from the 3.8% growth in the first quarter.

The weak second quarter performance makes room for a possible technical recession, which is two straight quarters of decline in economic output.

"The growth prospects of key emerging markets and developing economies... and China have worsened, partly due to the escalation of the US-China trade conflict in recent months", the trade ministry said. That comes after a 26.9% drop in electronics exports in the second quarter year-on-year.

Faced with the slowest growth the city-state has seen in a decade, Singapore has reduced its expected growth from 1.5 to 2.5 percent for 2019 down to a 0 to 1 percent for 2019, repots Straits Times.

Also, the risks from a "no-deal" Brexit could also lead to substantial trade frictions between the United Kingdom and its trading partners which would contribute to negative repercussions to the economic growth of United Kingdom and the European Union.

The ministry flagged a host of growing economic risks, including Hong Kong's political situation, the Japan-South Korea trade dispute, the Sino-US tariff war, slowing growth in China and Brexit.

The construction sector expanded by 2.9 per cent year-on-year, extending the 2.8 per cent growth in the first quarter.

The business services sector expanded by 0.5 per cent year-on-year, moderating from the 1.7 per cent growth in the preceding quarter.

Among the services sectors, the growth of the information and communications and finance and insurance sectors is projected to remain healthy, bolstered by the sustained demand for enterprise IT solutions and increased demand for payment processing services respectively.



Like this

loading...
loading...

Latest


13 August 2019
Trump Announces New Rule to Limit and Penalize Low-Income Immigrants
He insisted that the poem plaque was placed on the Statue of Liberty at nearly the same time as the first public charge law. NPR's Rachel Martin asked Cuccinelli on " Morning Edition " in an interview published Tuesday .

13 August 2019
Saber Interactive Recruits Ex-id Software Studio Director Tim Willits
Interestingly, Willits said that the opportunity to work on non-shooter was a big part of what attracted him to Saber . If it doesn't work, we change it quickly.

13 August 2019
United Kingdom court to hear bid to stop no-deal Brexit next month
In June, House Speaker John Bercow said it was "blindingly obvious" that the prime minister could not sideline parliament. The initial hearing to determine how the legal challenge will proceed is due to take place before Lord Doherty later.

13 August 2019
'The Lion King' Remake Becomes Top Grossing Animated Movie Of All Time!
The Lion King earned $473.1 million in the USA while it collected a whopping $861.5 million overseas. He wrote that the film crossed the Rs 150 crore milestone on its 24th day of release.

13 August 2019
Canada police: 2 teen fugitives took their own lives
Alan Schmegelsky said he didn't believe that his son identified as a neo-Nazi, but that he did think the memorabilia was "cool". The teens' bodies were found within a kilometer from where the unspecified items were discovered, MacLatchy said.

13 August 2019
Scientists hail promise of first effective Ebola treatments
A 2018 study published in the Lancet medical journal says "belief in misinformation was widespread" concerning the Ebola outbreak. The drug ZMapp along with remdesirir have been dropped after two other drugs were found to be more effective.

13 August 2019
Liam Hemsworth addresses Miley Cyrus split on Instagram
After years of dating, they took the big step but now they have made a decision to take individual paths in their lives. The former couple exchanged vows at its home in Nashville, Tenn., on December 23, after dating on and off for 10 years.

13 August 2019
Back-in-action Murray ready to go it alone in Cincinnati
The singles match was Murray's first since a painful exit from the Australian Open that had him thinking his career might be over. Who knows, maybe it will be in a few months". "My mentality changed a lot because I wasn't in pain anymore.

13 August 2019
Verizon to sell Tumblr
In addition to WordPress, Automattic also owns e-commerce platform, WooCommerce, and note-taking application Simplenote. But according to The Wall Street Journal , the platform's ban on adult content will remain in place.

13 August 2019
Former NBA Point Guard Sebastian Telfair Sentenced 3.5 Years for Gun Possession
In total, they found three loaded pistols, a gas-operated submachine gun, extended magazines, ammunition and the ballistic vest. She hasn't even gotten her period yet'.