(June 8): Economists lowered their forecasts for Singapore’s economic growth and raised inflation expectations, according to the latest Bloomberg News survey conducted June 2-5.
Gross domestic product (GDP) will expand 3.9% in the second quarter, according to the results, down from 4.5% in the previous survey in March.
The full-year GDP outlook fell to 3.3% from 3.5%. Headline and core inflation forecasts for this year were raised to 2.3% and 2%, respectively, from 1.5% previously for both.
While the government last month reiterated its 2%-4% outlook for growth this year, it warned that the outlook has weakened because of energy and supply chain disruptions from the Middle East conflict.
Supply disruptions have extended beyond crude oil and driven up production costs, Ahmad Mobeen, S&P Global Market Intelligence’s principal economist for Asia-Pacific, said in a survey response.
“These developments will compress margins in energy-intensive sectors, while increased uncertainty around global trade flows is likely to dampen investment and production decisions and export orders in the coming quarters,“ Mobeen added.
See also: PM warns of growth, inflation risks in second half
The city-state’s growth is expected to be uneven and challenged by external uncertainties, even as key export sectors continue to show momentum, said Han Teng Chua, senior economist at DBS Bank.
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