Domestic economy under threat from China slowdown, oil and gas weakness: MAS

But G3 recovery might give some respite.

The Monetary Authority of Singapore (MAS) today warned that the domestic economy is under threat from the slowdown in China, corporate realignments in the IT industry and continued weakness in the oil-related transport engineering sectors.

However, a firmer recovery in the G3 will provide a broad-based boost to the external-oriented sectors of the economy.

In its semi-annual Macroeconomic Review released today, the MAS reiterated that after two quarters of uneven growth, the profile of the domestic economy for the rest of the year will be shaped by various crosswinds.

"A firmer recovery in the G3, particularly the US, bodes well for Singapore’s export-oriented industries. However, China’s economy could be held back by property market weakness, consolidation within heavy
industries and the temporary effects of ongoing structural reforms. While the Singapore economy remains closely tied to improving final demand in the developed markets, China’s weakness will have some
impact on domestic GDP growth," stated the MAS.