Official GDP outlook narrowed to 1.5 to 2.5%

Lower band raised from 1.0% while upper band lowered from 3.0%.

The second half of the year will remain in the doldrums, said the Ministry of Trade and Industry in explaining the reationale bhind the GDP forecast trim for 2012, with transport engineering and transport possibly the only sectors to buck the trend of slackening demand.

Here's more from the Ministry of Trade and Industry:

Global economic conditions are expected to remain subdued in the second half of the year. In the advanced economies, consumer spending will be dampened by weak labour market conditions. Business investment is also expected to remain weak given ongoing sovereign debt concerns and uncertainties over the fiscal outlook. Although domestic demand in emerging Asia will be supported by accommodative policies, growth on the whole will still be hampered by slackening external demand.

Given the macroeconomic backdrop, the growth outlook for the Singapore economy remains cautious. Externally-oriented sectors, in particular electronics, wholesale and tourism-related services, will be affected by the slowdown in advanced economies. Continued uncertainties in the external environment will also weigh down on sentiment-sensitive segments within the finance & insurance sector. Nonetheless, there will be modest support to growth from healthy expansion in the transport engineering cluster and construction sector.

There continues to be uncertainties and downside risks. Barring unforeseen shocks, MTI expects the Singapore economy to remain on track to grow by 1.5 to 2.5 per cent in 2012.