SINGAPORE: Singapore’s economy expanded 3.5% last year, in line with expectations, the Ministry of Trade and Industry said Tuesday.

Last November, the ministry forecast growth of 3 to 3.5% for gross domestic product, upgrading an earlier forecast of 2 to 3%, after a stronger showing in the key electronics sector.

The economy had grown by 2% in 2016.

But growth in the fourth quarter of last year slowed down to 3.1% year-on-year from 5.4% in the third quarter, the ministry said as it released its advance estimates.

The manufacturing sector, which remains one of the key pillars of the economy, expanded by 6.2% in the fourth quarter, moderating from 19.2% in the third quarter.

In November, the ministry expressed concern that while global growth was expected to pick up marginally in 2017 on the back of a US economic recovery and firmness of emerging markets, growth in several of Singapore’s key external demand markets, such as China and the Eurozone, was expected to ease.

Global policy uncertainty also remains elevated, reflecting in part “uncertainty over the US administration’s policies and lingering concerns over the rise in protectionist sentiments,” it said.

Another worry is the geopolitical tensions in North Korea, which “could affect the economies of regional countries if tensions escalate.”

Source: https://www.bangkokpost.com/business/world/1389130/singapore-economy-expands-3-5-in-2017