Singapore likely to see sluggish growth
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Singapore's central bank has warned of sluggish growth again next year even as the country grapples with elevated inflation.
The Monetary Authority of Singapore (MAS) said the economy would grow below its potential rate – defined as between 3 per cent and 5 per cent – next year, as the outlook for the global economy remains murky.
But the good news is that Singapore’s domestic economy will stay resilient and help create jobs and lift wages, said the MAS.
The domestic sector, covering areas such as construction, healthcare and education, accounted for 70 per cent of growth in the first half of this year, said the MAS.
The domestic economy represents about one-third of economic output in Singapore.
“This [domestic sector] will provide support to the labour market, which should remain at close to full employment next year,” said the central bank.
Wages could also rise by more than 3 per cent next year, faster than this year’s 2 per cent to 3 per cent.
Singapore is expected to grow between 1.5 per cent and 2.5 per cent this year, far below the 5.2 per cent average growth rate over the past five years.
Many private sector economists expect growth of between 2 per cent and 3 per cent next year. MAS did not set a target for next year, but said growth would be “positive, but below trend”.
