Singapore economy to grow 3.3% this year

The Monetary Authority of Singapore’s (MAS) survey showed that analysts expect Singapore’s economy to grow 3.3 percent year-on-year in 2017, up from the earlier forecast of 2.5 year-on-year in September, reported Singapore Business Review.

In terms of indicators, analysts were more bullish on the manufacturing sector which is expected to expand 10.6 percent year-on-year, finance and insurance (3.7 percent year-on-year) as well as wholesale and retail trade (1.7 percent year-on-year).

The construction sector’s outlook, however, turned sourer as it dropped from -4.2 percent year-on-year to -7.6 percent year-on-year.

Meanwhile, 47 percent of the respondents believe the electronics sector offers a strong potential upside for the economy.

External growth and property market recovery are cited by 40 percent and 27 percent of the respondents, respectively. Exports upswing, on the other hand, accounted for 13 percent of all responses, down from 35 percent during the previous survey.

Although the composition of the top three downside risks from the September survey remained the same, more respondents, at 67 percent, felt the Chinese economic slowdown poses a significant potential downside.

Global trade protectionism and geopolitical uncertainty in the Middle East and North Korea continue to be major concerns.

The survey revealed that 40 percent of the respondents expect them to hinder economic growth, down from September’s 47 percent.

This article was edited by Keshia Faculin.