Singapore narrows full-year GDP growth forecast range to 1.5-2.5 pct

Source: Xinhua| 2019-05-21 09:41:59|Editor: Shi Yinglun
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SINGAPORE, May 21 (Xinhua) -- Singapore's Ministry of Trade and Industry (MTI) announced on Tuesday that the country's gross domestic product (GDP) expected for the whole year of 2019 was ranged from 1.5 to 2.5 percent, compared to the previously announced 1.5 to 3.5 percent.

The ministry said it has narrowed its 2019 GDP growth forecast, taking into account the performance of the Singapore economy in the first quarter, as well as the weaker external demand outlook for Singapore.

In the first quarter, the city-state saw its economy grew by 1.2 percent year on year, slightly lower than the 1.3 percent growth in the previous quarter. On a seasonally adjusted quarter-on-quarter basis, the economy expanded by 3.8 percent, a reversal from the 0.8 percent contraction in the previous quarter.

As for the external environment, the MTI said that the global growth outlook remains clouded by uncertainties and downside risks, which makes key outward-oriented sectors in the Singaporean economy expected to slow this year.

It said that Singapore's manufacturing sector is likely to see a sharp slowdown in growth following two years of robust expansion. In particular, the electronics and precision engineering clusters, which have contracted for two consecutive quarters, are expected to face strong headwinds.

Meanwhile, growth in outward-oriented services sectors, such as the wholesale trade sector and the transportation and storage sector, is expected to ease in tandem with the moderation in growth in key advanced and regional economies.

But the ministry added that the Singaporean economy still has pockets of strength. In particular, the growth of the information and communications sector is projected to remain healthy given firms' continued robust demand for IT and digital solutions.