Don't let poor growth outlook dampen sentiment too much

INITIAL estimates of Singapore's third-quarter economic growth will only be out on Friday, but already there are signs that things aren't pretty.

Both Deputy Prime Minister Tharman Shanmugaratnam and Trade Minister Lim Hng Kiang have said in recent days that full-year growth may fall within the lower end of the 1-2 per cent range. This is more bearish than the Ministry of Trade and Industry's view put out a few months ago, which was itself a narrowing from 1-3 per cent at the beginning of this year.

The signalling effects these comments have are strong; having two heavyweights on Singapore's economic policies come out in quick succession with a dimmer outlook before official growth estimates is surely not an everyday occurrence.