Home / International/ Singapore slashes 2019 GDP growth forecast to 0-1% after sharp second quarter contraction

Singapore slashes 2019 GDP growth forecast to 0-1% after sharp second quarter contraction


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 15 August 2019 00:00

Facebook

FILE PHOTO: Container cranes are pictured at the port of Singapore - Reuters

SINGAPORE (Reuters): Singapore slashed its full-year economic growth forecast on Tuesday, as global conditions were seen worsening and final second quarter data showed the economy shrank 3.3% on the quarter.

The government cut its forecast range for the city-state’s gross domestic product to zero to 1% from its previous estimate for 1.5%-2.5%.

The second quarter’s 3.3% contraction was slightly smaller than the 3.4% decline seen in the government’s advance estimate on a seasonally adjusted and annualised quarter-on-quarter basis, but firmed bets a recession may be around the corner.

Economists in a Reuters poll had expected the final reading to show a 2.9% fall.

“Looking ahead, GDP growth in many of Singapore’s key final demand markets in the second half of 2019 is expected to slow from, or remain similar to, that recorded in the first half,” the Ministry of Trade and Industry said in a statement on Tuesday.

A central bank official said after the data that it was not considering an off-cycle policy meeting. It is next scheduled to meet in October, where it is widely expected to ease policy. The city-state’s annual gross domestic product expanded 0.1% in April-June from a year earlier, in line with the advance estimate of 0.1% but below poll expectations of 0.2%.Singapore, often seen as a bellwether for global growth, has been hit hard by the Sino-US trade war which has disrupted world supply chains in a blow to business investment and corporate profits.

“Obviously, it feels like the storm is coming if you look at the whole macroeconomic fundamentals softening,” said Selena Ling, head of treasury and strategy at OCBC Bank, who also cited a recent round of monetary policy easing by Asian central banks.

New Zealand, India and Thailand all cut interest rates last week, signalling major concerns about the outlook for economic growth. Last month, the US Federal Reserve cut interest rates for the first time since 2008.

 

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

State of the economy of Sri Lanka

Saturday, 21 September 2019

I am not an economist nor do I profess to be an economic analyst. The views expressed in this presentation are those of a layman who has always been interested in the economic progress of Sri Lanka.


Premadasa, Père et Fils

Saturday, 21 September 2019

We are what time, circumstances and history has made of us. We are trapped in history. At age 77, I refuse to trap history in my mind. This essay is an obligation to history. Although J.R. Jayewardene introduced ‘Executive Presidentialism’, coer


Economy, business community and the Prime Minister

Friday, 20 September 2019

The speech made by Prime Minister Ranil Wickremesinghe as the Chief Guest of the Sri Lanka Economic Summit 2019 deserves very careful consideration by the country due to several reasons. This will no doubt be his last speech on economic policy to be


Sri Lanka needs to invest more on soft infrastructure

Friday, 20 September 2019

Developing countries like Sri Lanka will have to prepare for further downside risks in 2020 with the growing debt problems and the growth problems in Europe and the slowdown in Asia. Slower growth is already visible in weakening global trade and comm


Columnists More