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How weak job data is likely to restrain Singapore’s GDP growth

Michelle Zhu Published on Mon, Jul 31, 2017 / 3:21 PM GMT+8

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SINGAPORE (July 31): Maybank Kim Eng Research is maintaining its gross domestic product (GDP) growth forecast at 3% in the current year and 2.4% in 2018, while emphasising that the upside risks are now capped by weak job growth.

This comes as Singapore’s 2Q total employment figures fell for the second consecutive quarter on a decline in Work Permit Holders in the construction and manufacturing sector.

In a report last Friday, analysts Chua Hak Bin and Lee Ju Ye observe that while the services sector has continued to add jobs, it is at a weaker pace compared to the previous quarter.

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How weak job data is likely to restrain Singapore’s GDP growth