Singapore’s economic growth likely to be weaker this year

Illustrative image - Photo: nikkei.com

He also said that the Singaporean Ministry of Trade and Industry and the MAS are reviewing the 1.5 to 2.5 percent GDP growth forecast for this year, which was just slashed last month.

The present forecast hinges on the economy stabilising in the third quarter of the year and a modest pick-up thereafter, he added.

Menon noted that global manufacturing is in a “synchronised downturn”, global trade volumes have declined for two straight quarters and global investments have suffered from weakening business confidence.

Nevertheless, he stressed that the global economy is "not headed for a crash", as it is supported by healthy private consumption in Asia and other major economies and a resilient services sector worldwide.

Last year, he said, Singapore’s economic growth was driven by trade and modern services.