4 JULY 2017: Financial and Economy News
In a speech given in the Monetary Authority of Singapore (“MAS”) Annual Report 2016/17 Media Conference, the Singapore economy was forecast to grow by 1-3% in 2017, and it is highly likely to be better than the 2% registered in 2016. So far, the economic growth has been rather patchy across the various sectors. However, this was not considered to be unusual as the economy is in the early stages of an externally driven growth, and expected to widen to the other sectors of the economy as the year progresses. Currently, the trade-related cluster has been the main force propelling the recovering economy since Q4 2016, and MAS expects better growth in this cluster to lift the other economic sectors and also gain further growth with time. The modern services cluster (which includes the financial, business and ICT services) showed mixed results over the last two quarters but is ready for better growth in 1H 2017. The domestic-oriented cluster, which includes the retail and real estate segments, had experienced dull growth and some segments are expected to stay in the doldrums. This relatively poor performance was attributed to subdued consumer sentiment and the growth of e-commerce which had benefited overseas retailers. Ongoing infrastructure projects like the rail network extensions will provide support to public construction; but private construction activities are likely to remain relatively muted.
The full report can be found at the website of MAS.
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