Singapore's 2019 GDP growth forecast cut to 2.1%: MAS survey

The manufacturing as well as wholesale and retail trade sectors are tipped to contract 0.2% and 0.3% respectively.

The outlook appears increasingly dim for Singapore as economists surveyed by the Monetary Authority of Singapore (MAS) cut the year-end growth forecast to 2.1% from the previous survey forecast of 2.5%.

The move comes after a dismal start to the year that saw the Singapore economy grew by 1.2% in Q1. 

Also read: MTI downgrades Singapore's 2019 GDP forecast to 1.5-2.5% amidst weakening outlook

The manufacturing sector is expected to contract 0.2% from the previous survey forecast of 2.0% growth. The wholesale & retail trade sector is also expected to enter negative territory with expectations that the sector will shrink 0.3% from the previously anticipated 1.5%. The growth in the finance & insurance as well as the accommodation & food services sectors is also tipped to slow to 3.8% and 1.4% from previous estimates of 4.5% and 2.4%.

Only the construction sector is expected to post gains of 3.5% from the previously projected 2.1%.

Also read: Singapore is 3rd most vulnerable APAC country to Chinese trade decline

The surveyed economists also expect private consumption growth to slow to 2.5% from 2.8% and non-oil domestic exports to shrink 2.1% from the previously projected 1.1% expansion.

Overall, the economists anticipate the Singapore economy to grow between 2-2.4% for the full-year period and hit 2.3% by 2020.

“Reflecting recent developments in US-China relations, concerns about escalating global trade protectionism continue to dominate the list of potential downside risks. The proportion of respondents who expect an escalation in trade frictions to present a downside risk rose to 94.1%,” the survey added.