Singapore GDP growth to remain subdued in the near future

Economists are less optimistic about Singapore’s economic outlook for next year, according to an official survey of forecasters. The September survey of professional forecasters in mid-August found that economic growth next year was expected to come in at 1.8 percent next year, down from a forecast for 2.1 percent growth in the previous survey.

The survey, which had 22 respondents noted that the most likely outcome was for the Singapore economy to grow by 1.0-1.9 percent in 2017, down from the 2.0-2.9 percent range in the previous survey. For 2016, economists still expect 1.8 percent growth, unchanged from the June survey. For Q3 2016, economists were forecasting GDP growth of 1.7 percent on-year, after Q2 growth came in at 2.1 percent, slightly above the 2.0 percent growth forecast from the June survey.

Singapores inflation forecasts for 2016 were also lowered, with economists now expecting price contraction of 0.5 percent, compared with contraction of 0.4 percent in the previous survey. Core inflation was expected to come in at 1.0 percent, up from 0.8 percent in the previous survey.

Selena Ling, head of treasury research and strategy at Singapore-based OCBC Bank said in a note on Wednesday that concerns over Brexit and recent softness in Chinas economic readings may have weighed on economists forecasts.