Singapore GDP slows in 2018Q4 amid US-Sino trade tensions

Singapore's economy grew more slowly than forecast in the last quarter of 2018 after the manufacturing sector shrank, said a report by Reuters.

This added to concerns that a trade dispute between the United States and China will drag on growth in 2019.

In the coming months, rising trade protectionism and uncertainty over US-China relations are key risks for Singapore. This is despite the fact that impact from the trade frictions have so far had only a limited impact on its small and open economy, said Reuters.

Photo: Connected to India
Photo: Connected to India

Singapore's trade-reliant economy grew 1.6 percent in the October-December quarter from the previous three months on an annualised and seasonally adjusted basis. This was slower than expectations, said the Ministry of Trade and Industry (MTI) said in a statement on Wednesday, January 2.

The manufacturing sector shrank 8.7 percent on a quarter-on-quarter seasonally-adjusted annualised basis, according to data from MTI. This reverses from the 3.1 percent growth in the third quarter.

The economy grew 2.2 percent in the fourth quarter, compared to a year earlier. The figure fell short of the median forecast of 2.3 percent in a Reuters survey and a revised 2.3 percent growth in the third quarter.

Overall for 2018, Singapore's economy expanded 3.3 percent, slowing from a three-year high of 3.6 per cent the prior year. The government's forecast for 2018 growth had been 3.0 to 3.5 per cent.

Author
CtoI News Desk
CtoI News Desk – CtoI

Singapore-headquartered online media company targeting Indian Diaspora across Singapore, US, UK, India and UAE. Connected to India covers developments around NRIs. Cover arts, political, sports, finance, entrepreneurship, business, movies, dramas, entertainment and other news for Indians living worldwide.

Comments