Singapore Q2 Economy Slowing

Forex News

Singapore's economy is projected to have slowed in the Q2 on US-China trade war. Advance GDP was expected to have increased 4.0% comparing to 2017, which is less than Q1’s 4.4%. In a seasonally adjusted and annualized basis, GDP is forecast to have risen 1.2% in the second quarter, which is less than 1.7% expansion in Q1.

Irvin Seah, an economist at DBS Bank said: "The modest easing is nothing more than a normalization process amid the peaking of the electronics cycle and higher interest rates. But clouds on the horizon are gathering. Trade tensions between Singapore's two largest export markets, the U.S. and China, could indirectly affect Singapore".

The Ministry of Trade and Industry has projected full-year growth to make up 2.5-3.5% in 2018. Vishnu Varathan, head of economics and strategy for Mizuho Bank in Singapore noted: "Despite trade war risks and sharper exports deceleration, manufacturing has been fairly resilient; partly boosted by services aspect of manufacturing".