Private sector economists have cut their forecast for Singapore’s economic growth this year to 1.4 percent amid a global slowdown and inflationary pressures.
This is down from their projection of 1.9 percent in March.
The findings from the latest survey of professional forecasters were released by the Monetary Authority of Singapore (MAS) on Wednesday (Jun 14). The survey was sent out on May 25.
Spillovers from an external growth slowdown emerged as the most cited downside risk to the domestic outlook, as identified by 61 percent of the 24 respondents. It was most frequently ranked as the top downside risk.
The respondents also flagged inflationary pressures and an escalation in geopolitical tensions as risks to the domestic growth outlook.
China in May banned US semiconductor giant Micron from selling chips to its key domestic industries, marking yet another escalation in the tense relations between both countries.
According to the survey, the manufacturing sector – which accounts for about one-fifth of Singapore’s economy – is expected to contract by 1.3 percent this year.
n the latest survey, private-sector economists expect core inflation to come in at 4.1 percent for the whole of 2023, unchanged from their projection in March.
Core inflation, which excludes accommodation and private transport costs, is forecast to hit 4.6 percent in the second quarter of this year, according to the survey respondents.
The economists also expect core inflation to ease to 3 percent next year.
Source: CNA
