Singapore Economy to Grow By 2.5 per cent 2019

The Monetary Authority of Singapore (MAS) in its latest quarterly survey has forecasted the Singapore economy to grow by 2.5 per cent. Its a slight downgrade from 2.6 per cent from its previous poll.

The downturn is attributed to trade tensions between China and the United States which in turn will leave an impact on Singapore's insurance, finance, wholesale and retail, trade, food services, accommodation and private consumption. However, forecasters are optimistic about an increase from 1.5 per cent to 2.1 per cent. Economists say there is a high possibility for trade tensions to ease as the leaders of the two countries are in talks.

There is also a downward trend in Singapore's purchasing managers' index (PMI) which points towards the 'decelerating momentum for the coming months. Selena Ling, OCBC Bank's head of treasury research and strategy, said the forecast drop from economists was expected, given that world organizations like the International Monetary Fund had also cut their growth forecasts.

Ling said the downside risks will emerge as early as the first quarter of the year. She also added that there was scope for growth.