Singapore's 2017 GDP growth likely higher than 2 pct: MTI

By：Xinhua Update：2017-05-25

Singapore's Ministry of Trade and Industry (MTI) on Thursday announced that the country's GDP growth forecast for 2017 is likely to come in higher than 2 percent.

MTI on Thursday modified the GDP figures for the first quarter of 2017 from 2.5 percent to 2.7 percent on a year-on-year basis, easing from the 2.9 percent growth in the previous quarter.

While on a quarter-on-quarter seasonally-adjusted annualized basis, Singapore economy contracted by 1.3 percent, after posting a strong rebound of 12.3 percent in the preceding quarter.

MTI said global growth is projected to pick up slightly in 2017. In particular, growth in the advanced economy like the United States, and the main ASEAN economies are expected to improve.

MTI, however, noted that despite the improved growth prospects for the global economy, uncertainties and downside risks remain.

Rising anti-globalization sentiments could lead to increased protectionism. In addition, political uncertainties continue, including the result of Britain's Brexit negotiations.

Against this external backdrop, MTI added that trade-related sectors such as the manufacturing and transportation and storage sectors are likely to provide support to the Singapore economy in 2017.

"In particular, growth in the electronics and precision engineering clusters is expected to be sustained for the rest of the year on the back of the strong recovery in global demand for semiconductors and semiconductor manufacturing equipment," MTI said.

Another sector that is likely to benefit from the projected improvement in global trade flows is the transportation and storage sector, the statement added.

Overall, MTI maintained its 1 percent to 3 percent forecast for the growth outlook for the Singapore economy in 2017.