Economists cut Singapore GDP forecast

SINGAPORE: Singapore’s economy is forecast to grow 1.4% this year, a central bank survey of economists shows, down from a previous projection of 1.9%, as spillovers from an external slowdown threaten the trade-sensitive city-state.

More robust growth in China, underpinned by economic re-opening and macroeconomic policy easing, were the top upside risks to Singapore’s growth outlook, according to a Monetary Authority of Singapore (MAS) survey of 24 economists.

The full-year headline and core inflation are likely to come in at 5% and 4.1%, unchanged from the previous survey, respectively.

Economists expect MAS to keep monetary policy settings unchanged at its next scheduled review in October, the survey added, and about a quarter of them anticipate a reduction in the slope of the policy band in April next year.

The central bank unexpectedly left monetary policy settings unchanged in April, reflecting the financial hub’s concerns about its growth outlook.

The surveyed economists’ median forecast was for gross domestic product to expand by 1.5% in the second quarter of 2023, after a lower-than-expected 0.4% expansion in the first quarter. Growth is expected at 2.5% in 2024. — Reuters