Singapore's MTI sticks to modest 2017 growth outlook at between 1-3%

THE Singapore government is maintaining its "modest" growth outlook for 2017, underpinned by a pick up in global growth that is compromised by uncertainties including those from the new US president and his administration.

In a release on Friday morning, Singapore's Ministry of Trade and Industry (MTI) sees full-year growth for this year to be at between 1 to 3 per cent. This is unchanged from an earlier forecast.

"Global growth is projected to pick up slightly in 2017. In particular, growth in the US and key Asean economies is expected to improve, even as growth in China continues to moderate," it said.

However, Singapore was still concerned about uncertainties, with protectionist sentiment its chief worry.

"Political risks and the lack of clarity on the policies of the new US administration have also heightened economic uncertainties globally and led to financial market volatility," it said.

"These uncertainties may in turn weigh on business and consumer confidence, thereby dampening investments and consumption, and causing a pullback in global growth."

It also sounded concerns over a monetary pull back in China if conditions worsen there, resulting in tightening credit and lower investment flows.

"Taking the above factors into account, the Singapore economy is expected to grow at a modest pace of '1.0 to 3.0 per cent' in 2017," said MTI.