Look at how measly domestic economy will grow this year

1.5% is no reason to rejoice.

According to MAS Recent Economic Developments report, the domestic economy is expected to expand by around 1.5% in 2012 and 1-3% in 2013.

Here's more from MAS:

Global economic conditions are expected to remain subdued in the quarters ahead. Uncertainties over the fiscal cutback in the US and debt sustainability in the Eurozone will continue to impact global demand, and hence the Singapore economy.

Further, the persistently high inventory levels in the global semiconductor industry will dampen the near-term outlook of Singapore’s IT-related sectors.

Thus, activity in the externally-oriented industries, such as electronics manufacturing, wholesale trade and transport & storage, is likely to remain weak.

Renewed risk aversion in global financial markets amidst continuing uncertainty could also weigh on the sentiment-driven financial industries.

Nonetheless, some modest growth support could come from sectors such as transport engineering and construction, which have locked in a steady pipeline of projects.

The domestic-oriented industries, which tend to be relatively more insulated from swings in economic cycles, could also help to shore up overall economic activity.

On balance, barring a further deterioration in the global economy, growth of the Singapore economy is expected to come in around 1.5% this year. With the sluggishness in the external environment likely to persist, the Singapore economy is expected to expand by a modest 1-3% in 2013.