Watchers expect Budget fillip, with output gap set to worsen in 2020

Economy is expected to perform below potential into 2020, so expansionary stance is expected

Annabeth Leow

Published Wed, Oct 30, 2019 · 09:50 PM

Singapore

PUBLIC spending may give less of a boost to the economy this year than earlier expected, going by data in the central bank's twice-yearly report released on Wednesday.

But, with Singapore's economy expected to perform below its potential even into the new year, watchers believe policymakers may loosen the purse-strings when the next Budget is delivered in the first quarter.

Fiscal impulse, which measures the effect of government spending in the short term, is tipped to be about 0.4 per cent of gross domestic product (GDP) for the year - much milde…