Singapore: GDP growth forecast slashed

Thursday, 11. August 2016 07:15

The economy of Singapore expanded at annual rate of 2.1% in the second quarter of 2016, unchanged from the previous three-month period. When compared quarter to quarter, economy grew by 0.3% in the period April-June, faster than 0.1% in the first quarter. Almost all sectors saw healthy grow, except for the services sector.

The Ministry of Trade and Industry (MTI), however, narrowed its forecast for 2016, to a range of 1.0% to 2.0%, from previous 1.0% to 3.0%. The cut on the upper limit was explained by weaker global economic prospects and the "effects the UK's vote in June to leave the European Union," which "has dampened and also added uncertainties to the global growth outlook," said the MTI.

Most economies will grow even slower than expected, including China which will slow down in the second half of the year. The exception could be the United States' economy. When it comes to Europe, "full-year growth in the Eurozone is likely to remain modest and come in slightly lower compared to 2015," explained the MTI.

The Straits Times Index declined 0.39% to 2,864 points at 7:00 a.m. CET. The Singaporean dollar added 0.02% against the Japanese yen, and advanced 0.08% compared to the euro, while falling 0.16% versus the U.S dollar.

 

Image: EPA / Wallace Woon

Related Links: 
Author:
Breaking the News / ZR