You are here

Forecasters expect 2.7% Singapore GDP growth in 2015: MAS survey

singaporeeconomy170615.jpg
While Singapore's economic forecasters have kept their 2015 growth projections more-or-less the same - they expect GDP to grow 2.7 per cent this year, compared to 2.8 per cent a quarter ago - their take on various sectors has shifted.

WHILE Singapore's economic forecasters have kept their 2015 growth projections more-or-less the same - they expect GDP to grow 2.7 per cent this year, compared to 2.8 per cent a quarter ago - their take on various sectors has shifted. The manufacturing sector, in particular, is expected to grow at a slower pace than earlier forecast.

This is according to findings from the latest quarterly survey conducted by Singapore's central bank, released on Wednesday.

The 23 private-sector economists and analysts who responded to the Monetary Authority of Singapore's (MAS) survey in May have moderated their expectations for manufacturing and finance & insurance growth, but raised their forecasts for the construction and wholesale & retail trade sectors.

The median forecast for manufacturing growth is now a weaker 0.5 per cent, compared to 1.8 per cent a quarter ago. Finance & insurance is expected to grow at 7 per cent, down from a median forecast of 7.5 per cent in March.

But economists are more optimistic about construction and wholesale & retail trade; both sectors are now expected to expand 3.3 per cent this year, up from 2 per cent and 2.2 per cent respectively in the previous survey.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

As for consumer prices, the forecasters' projections for 2015 remained stable. Core inflation is still expected at one per cent, while headline inflation is expected at 0 per cent, compared to an earlier estimate of 0.1 per cent.

Both private-sector growth and inflation projections fall within the government's forecasts. According to the Ministry of Trade and Industry (MTI), the Singapore economy should expand between 2 and 4 per cent in 2015. Headline and core inflation are projected to average -0.5 to 0.5 per cent and 0.5 to 1.5 per cent respectively.

More on the Singapore economy:

Key macroeconomic indicators (yoy% change) - 2015 forecastsMarch surveyJune survey
GDP2.82.7
-- Manufacturing1.80.5
-- Finance & insurance7.57.0
-- Construction2.03.3
-- Wholesale & retail trade2.23.3
-- Accommodation & food services2.31.0
Private consumption2.22.6
Non-oil domestic exports1.62.6
CPI-all items (Inflation rate)0.10.0
MAS core inflation1.01.0
Unemployment rate (end-period, seasonally adjusted %)2.02.0
Exchange rate (end-period, S$/US$)1.4001.380
3-month S$ SIBOR (end-period, % per annum)1.151.25
Bank loans (end-period, % growth)5.55.3

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes