Gloomy outlook for Singapore’s economy as trade war bites

Gloomy Outlook For Singapore’s Economy As Trade War Bites

Singapore’s government cut its forecast for economic growth this 2019 to almost zero as the escalating US-China trade war dampens the region’s most trade-reliant economies.

Singapore’s economy now is seen growing between zero and one per cent this year, down from a previous projection of between 1.5 and 2.5 per cent, the Ministry of Trade and Industry said on August 13, with growth expected to come in near the midpoint of the range. It is the city state’s slowest full-year growth forecast in a decade.

Ministry data shows Singapore’s economy grew 0.1 per cent in the second quarter compared to a year ago, unchanged from the government’s previous estimate, while GDP contracted an annualised 3.3 per cent in the first three months of the year. The median estimates in a survey of economists were a three-per cent contraction on-quarter and 0.2 per cent growth compared to a year ago.

Exports plunged in June to their second-worst rate since the global financial crisis a decade ago. The purchasing manager’s index shrank in May for the first time since 2016 and has now shown contraction for three straight months, pressured by an ailing electronics sector.

Other data from Enterprise Singapore, a government agency for corporate development, showed non-oil domestic exports shrank 14.6 per cent in the second quarter from the year-earlier period as shipments of both electronic and non-electronic products declined.

All that has raised the prospect of a recession in Singapore and possible job losses, which are now hotly discussed topics between economists. They are also not ruling out the possibility of monetary easing and a fiscal stimulus package in the near term if data for the consecutive months turn out to be worse than expected.

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Singapore’s government cut its forecast for economic growth this 2019 to almost zero as the escalating US-China trade war dampens the region’s most trade-reliant economies. Singapore’s economy now is seen growing between zero and one per cent this year, down from a previous projection of between 1.5 and 2.5 per cent, the Ministry of Trade and Industry said on August 13, with growth expected to come in near the midpoint of the range. It is the city state’s slowest full-year growth forecast in a decade. Ministry data shows Singapore’s economy grew 0.1 per cent in the second quarter compared to...

Gloomy Outlook For Singapore’s Economy As Trade War Bites

Singapore’s government cut its forecast for economic growth this 2019 to almost zero as the escalating US-China trade war dampens the region’s most trade-reliant economies.

Singapore’s economy now is seen growing between zero and one per cent this year, down from a previous projection of between 1.5 and 2.5 per cent, the Ministry of Trade and Industry said on August 13, with growth expected to come in near the midpoint of the range. It is the city state’s slowest full-year growth forecast in a decade.

Ministry data shows Singapore’s economy grew 0.1 per cent in the second quarter compared to a year ago, unchanged from the government’s previous estimate, while GDP contracted an annualised 3.3 per cent in the first three months of the year. The median estimates in a survey of economists were a three-per cent contraction on-quarter and 0.2 per cent growth compared to a year ago.

Exports plunged in June to their second-worst rate since the global financial crisis a decade ago. The purchasing manager’s index shrank in May for the first time since 2016 and has now shown contraction for three straight months, pressured by an ailing electronics sector.

Other data from Enterprise Singapore, a government agency for corporate development, showed non-oil domestic exports shrank 14.6 per cent in the second quarter from the year-earlier period as shipments of both electronic and non-electronic products declined.

All that has raised the prospect of a recession in Singapore and possible job losses, which are now hotly discussed topics between economists. They are also not ruling out the possibility of monetary easing and a fiscal stimulus package in the near term if data for the consecutive months turn out to be worse than expected.

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