SINGAPORE'S gross domestic product (GDP) growth for 2016 should average 1.6 per cent, after expanding by 2.0 per cent in 2015, Moody's Investors Service said on Wednesday.
The credit rating agency said that its forecast is at the lower end of the Singapore government's estimated growth range of 1.0-3.0 per cent.
"Growth is expected to be significantly slower than it was between 2000 and 2010, when it averaged 6.2 per cent annually. A slowdown in external demand will remain the key drag. Industries with high exposure to global conditions, such as engineering - including marine and offshore engineering - and oil and gas, will be most affected," Moody's said.
It said that trade-dependent Singapore is especially vulnerable to the current lacklustre global trade conditions.
"In particular, Singapore's close trade and financial linkages with China (Aa3 negative), imply that the slowdown in China presents significant challenges for Singapore, particularly given the island state's role as an international financial centre in the Asia-Pacific region."