S’pore economy grew two pct in 2016
SINGAPORE: The Singapore economy grew by 2.0 per cent in 2016 and is forecast to expand by between 1.0 and 3.0 per cent this year, says the Ministry of Trade and Industry ( MTI).
The island city’s Gross Domestic Product grew 2.9 per cent year- on-year in the fourth quarter, faster than the 1.2 per cent growth recorded in the previous quarter.
The republ ic’s economy expanded 1.9 per cent in 2015, said MTI in a statement yesterday.
Singapore’s manufacturing sector grew 3.6 per cent last year, a reversal from the 5.1 per cent decline registered in 2015.
Growth in the sector was d r iven prima r i ly by the electronics and biomedical manufacturing clusters, even when the transport engineering and general manufacturing clusters continued to contract, it said.
The construct ion sector expanded 0.2 per cent , moderating from the 3.9 per cent growth in 2015, due to sluggish private sector construction work, it said.
The services producing industries grew 1.0 per cent in 2016, easing from the 3.2 per cent growth registered in 2015.
Growth was mainly supported by the ‘other services industries’ and the transportation a storage sector, which expanded by 3.1 per cent and 2.3 per cent respectively, said MTI.
On economic outlook for this year, the Ministry said global growth was projected to pick up slightly.
In particular, growth in the United States ( US) and key Asean economies was expected to improve, even as growth in China continued to moderate.
The US economy was projected to grow at a faster pace in 2017, supported by domestic demand and expected fiscal stimulus under the new US administration.
On the other hand, growth in the Eurozone was likely to remain modest, as consumption growth may be dampened to some extent by sluggish labour market conditions.
In Asia, China’s economic growth was expected to ease further, as investment growth continued to slow on the back of a slowdown in the housing market and continued efforts to reduce overcapacity in the heavy industries.
Meanwhi l e , key Asean economies are expected to register a modest uptick in growth in 2017, supported by resilient domestic demand, as well as, exports demand on the back of an expected improvement in global growth.
However, uncertainties and downside risks in the global economy remain.
MTI also said even as the United Kingdom navigated through “Brexit”, upcoming elect ions in key Eurozone economies may create further uncertainties regarding the future of the monetary union.
The ministry also pointed out that signs of a rise in antiglobalisation sentiment was apparent and if protectionist approaches become the norm, global trade would be adversely affected, with 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.
If monetary conditions tighten further in China and result in a steeper-than-intended pullback in credit, investment spending and hence growth in China could slow down more sharply than expected. — Bernama