Economists again cut 2016 Singapore growth forecast to 1.4%

THE Singapore economy is projected to expand 1.4 per cent this year, according to private-sector economists polled by the Monetary Authority of Singapore (MAS) - marking yet another paring of growth forecasts.

Analysts had earlier expected gross domestic product (GDP) to expand 1.8 per cent - already a step down from previous estimates of 1.9 per cent and 2.2. per cent.

Estimated growth in 2017 isn't looking markedly better; a 1.5 per cent expansion is expected next year, which is lower than the previous estimate of 1.8 per cent.

The central bank's latest quarterly poll was sent out on Nov 24, and received views from 22 respondents.

The softer 2016 median forecast pencils in a far worse showing in the finance & insurance and wholesale & retail trade sectors. These are expected to expand 0.5 per cent and 0.1 per cent respectively, versus earlier projections of 2 per cent and 2.1 per cent.

However, estimated manufacturing growth is more or less the same at 0.8 per cent, compared to 0.7 per cent previously.

Inflation forecasts also remain stable. Headline inflation is still projected to come in at -0.5 per cent, while core inflation is estimated at 0.9 per cent (versus one per cent earlier).

Core inflation strips out costs of accommodation and private road transport.