Singapore economy to grow 1-3% in 2017

The growth outlook remains modest for next year.

The Ministry of Trade and Industry (MTI) expects the manufacturing sector to see an improvement in performance on the back of sustained global demand for semiconductors and semiconductor equipment, although the marine & offshore engineering segment and firms supporting the global oil & gas industry are expected to continue to face weak demand conditions amidst low oil prices.

Tourism-related sectors are likely to benefit from a boost in travel demand as the global economic outlook improves. At the same time, sectors such as information & communications and “other services industries” are likely to continue to support growth, adds MTI.

On the other hand, externally-oriented services sectors such as finance & insurance and wholesale trade are expected to remain sluggish.

Taking into account the above factors, and barring the full materialisation of downside risks, MTI expects the Singapore economy to grow at a modest pace of “1.0 to 3.0 per cent” in 2017.