Singapore’s market experienced the most rapid growth in a decade last year, increasing by a marginal 0.7 percent. This pales in comparison with the 3.1% increase recorded in 2018, reported Channel News Asia, according to Bloomberg data.
The Ministry of Trade and Industry (MTI) said that GDP for the final few weeks of 2019 grew by 0.8% in precisely the same period in 2018, and it will be a small improvement from the revised 0.7% increase for its next quarter. The fourth-quarter flash estimate, meanwhile, that can be generated based on data in the first two weeks of this quarter, was based on a Thomson Reuters forecast.
But on a quarter-on-quarter seasonally-adjusted annualised basis, the market’s just grew by 0.1 percent. This expansion is far from the 2.4% expansion listed in the past quarter and falls behind economists’ forecast of 0.4 percent.
Manufacturing decreased by 2.1percent on a year-on-year basis from the fourth quarter, compared to third quarter’s 0.9percent decrease.
The services-producing businesses recorded a 1.4% expansion from a year ago, which can be faster than the 0.9% increase reached in the next quarter. Meanwhile, building expanded by 2.1percent on a year-on-year basis for its fourth quarter, compared to the 2.4% increase in the past few months.
Singapore’s market slowed down in 2019 at the middle of a trade war between China and the US as well electronic industry going through a cyclical recession.
This led in policymakers adjusting their full-year financial expansion forecast three occasions and the latest flash estimate released places the forecast range from 0.5% to 1%.
“This latest advance GDP expansion release affirms that the Singapore economy bottomed in the next quarter of 2019,” said Selena Ling, head of treasury research and strategy for OCBC.
“Our 2020 GDP growth forecast remains at 1 to 2 percent year-on-year, assuming that the manufacturing recovery remains in’fits and starts’ pattern but using all the services and construction industries continuing to tread a more profound growth trajectory.”
Economists are also closely watching the upcoming Budget 2020, to be sent on 18 February from Deputy Prime Minister and Finance Minister Heng Swee Keat.
Jonathan Koh, Standard Chartered economist, also anticipates a”supportive” funding because of the surplus gathered thus far in the government’s term.
“We believe that there is likely to be fiscal stimulation.
Prime Minister Lee Hsien Loong said in a New Year message that the nation has been affected by the downturn in the global market. Though Singapore’s market is still growing and has avoided a recession this year, it’s acting”less aggressively than we’d like”.
In his New Year message, People’s Action Party first assistant secretary-general Heng also aired concerns regarding the developing global uncertainty and economic downturn.
“We are taking a look at measures to tackle them, even as we build for the long duration,” he said.