Business

December 16, 2017 at 11:00 am

Singapore Economic Growth Could Top Three Percent Next Year

There are still a few risks out there in Singapore’s external economic environment. However, certain economists feel that 2018 may be a great year for economic growth in the island city-state. These “bullish” economic experts feel that economic growth could rise by over three percent in 2018, with the maximum projected rate of economic growth topping out at three and half percent.

If this positive and cheery projection comes to pass, Singapore will experience its strongest economic growth in four years. 2017 was a pretty good year for Singapore financially. Recent quarters show that this impressive rate of economic growth is still happening.

Economic Growth

Which Industries are Growing?

Biomedical and tech niches are doing well in Singapore. Stats for manufacturing output recording show very strong gains, especially during July and August of 2017. Right now, CIMB’s regional economist, Song Seng Wun, feels that external demand is growing at a faster rate than anticipated. He also feels that the broad sector for manufacture is looking good and that its healthy financial picture is inspiring improvements in the sector for services.

Some factors are important variables which may impact how well Singapore does in 2018. Examples include upcoming federal elections in Thailand and Malaysia. They add a bit of risk, as political uncertainty often plays a role in whether or not economies grow or falter. According to Selena Ling, growth may rise as high as four percent in 2017 or be as low as two percent. Ms. Ling is the leader of Treasury Research/Strategy at OCBC.

Ling believes that Singapore is dependent on the way that China manages deceleration of growth, as well as how China chooses to manage challenges related to policy, in addition to capital outflow and renminbi challenges.

Another Singapore industry which may do well next year is the sector for property. As well, industries which are domestic-oriented may experience a good level of economic growth.

If such projections come into being, Singapore will be enjoying superb economic performance in 2018. The economy in Singapore hasn’t grown by more than three percent since 2014.

The Services Service May Skyrocket

Economists also believe that the service sector will grow in Singapore next year. Professional services, financial services, wealth management services and business services are all expected to do well.

Will There Be a Downside?

There are downside risks. One is the fact that the geopolitical environment lacks stability. While markets are starting to take into account big shifts, including Brexit, actions which relate to these geopolitical changes may impact the decisions that central banks male.

Right now, financial experts who keep tabs on Singapore anticipate that the MAS (Monetary Authority of Singapore) will keep its existing monetary policy outlook in place when the October meeting about monetary policy is held.

Singapore has become very attractive to investors and it’s also got a strong fintech niche which is breeding some exciting and lucrative startups. Overall, the nation is poised to become a strong economic player. It remains to be seen just how high growth will go

About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like FinTech Startups in Singapore, Balancing Work & Life as Business Ownerand all topics related toBusiness and Tech, if you are interested about Company Incorporation Singapore visit our website for more information.

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