Economists trim GDP forecasts as key growth drivers lose steam

Manufacturing will book a full-year contraction.

Economists and analysts have lowered their 2015 growth forecasts for Singapore, according to the Monetary Authority of Singapore's (MAS) latest Survey of Professional Forecasters.

Respondents expect the economy to grow by a mere 2.2% this year, below the 2.7% growth forecast in the June 2015 survey.

Analysts now expect the manufacturing sector to book a full-year contraction of -2.7%, compared to a marginal 0.5% growth in the June survey.

Growth forecasts have also been trimmed for other key macroeconomic indicators such as finance and insurance, construction, wholesale & retail trade, and accommodation & food services. Non-oil domestic exports are also expected to grow at a modest 1.5%, compared to 2.6% in June.

The lone bright spot is private consumption, which is expected to grow by 3.3% compared to 2.6% in June.

The Singapore economy expanded by 1.8% in Q2 2015, which was lower than the median forecast of 2.7% reported in the June 2015 Survey.

The Ministry of Trade and Industry has also narrowed its growth forecast to 2.0% to 2.5%, from the original 2.0% to 4.0%.