The Ministry of Trade and Industry (MTI) of Singapore has forecasted that the country’s economy will expand by between 1-3 percent in 2017 following a growth rate of 2 percent last year, source from Vietnamnews.
The forecast came in the context that the global economy is expected to slightly recover in 2017 and the US and ASEAN economies improve, even as China’s growth continues to moderate.
However, the MTI warned that the global economy’s recovery might be unsecured as political risks and economic uncertainties may arise with the upcoming elections in key Euro zone economies and the UK is going to embark on negotiations on its exit from the European Union (EU).
According to the MTI, there are also signs of a rise in anti-globalisation sentiments and protectionist approaches could generate knock-on effects on economic growth worldwide.
Political risks and the lack of clarity on the policies of the new US administration have also heightened economic uncertainties globally and led to financial market volatility.
These uncertainties may in turn weigh on business and consumer confidence, thereby dampening investments and consumption, and causing a pullback in global growth, it added.
The MTI predicted that several sectors are hoped to support Singapore’s economic growth this year, particularly the manufacturing sector.
Data released by the MTI showed that Singapore’s economy grew by 2 percent in 2016, higher than the forecast figure of 1.8 percent thanks to a higher-than-expected growth rate of 2.9 percent in the fourth quarter.