Singapore on track for modest growth amidst global headwinds: MAS

GDP will expand by 1-3%.

The local economy is expected to continue on its modest pace of expansion this year, Monetary Authority of Singapore Managing Director Ravi Menon said in a speech.

On the global front, Menon noted that chances are that growth will be slightly higher this year compared to the last.

However, some caution is still warranted as there remains considerable uncertainty as to the actual policy changes in store, which may not pan out as expected.

"Strong showing in the last quarter of 2016 indicates that the Singapore economy retains the capacity to ride on cyclical upswings in demand for our exports. That is not to say that all is well. Economic restructuring remains work-in-progress and we need to do more to raise productivity growth," Menon said.

"Singapore will not be immune to the global tightening of financial conditions, volatility in capital flows, and potential stresses in the regional corporate sector. But our macro fundamentals are sound and we will weather these storms. And as we continue to invest in the future – in skills, in technology, and in infrastructure, we will emerge a stronger and more dynamic economy," he added.