Singapore economy's grew by 3.6 per cent in 2017, compared to the 2.6 percent growth the year before, according to a press statement by the Ministry of Trade and Industry (MTI) on Feb 14, 2018.
The growth was driven primarily by the electronics and precision engineering clusters, due to the healthy global demand for semiconductors, semiconductor equipment, as well as optical products. The manufacturing sector expanded by 10.1 percent, accelerating from the 3.7 percent growth in 2016.
For 2018, GDP growth is expected to moderate from 2017’s growth but remain firm. MTI’s central view is for GDP growth to come in slightly above the middle of the forecast range of “1.5 to 3.5 percent.”
The manufacturing sector is likely to continue to expand and provide support to growth in the overall economy. In particular, the electronics and precision engineering clusters are projected to sustain a healthy, though more moderate, pace of growth in 2018.
Externally-oriented services sectors such as finance & insurance, transportation & storage and wholesale trade are expected to benefit from firm external demand. However, their pace of growth is also likely to ease in 2018.
Growth is also expected to broaden to domestically-oriented services sectors like retail and food services on the back of an improvement in consumer sentiments amid the on-going recovery in the labour market.
Meanwhile, the information & communications and education, health & social services sectors are expected to remain resilient.