A scene of Marina Bay in Singapore. The Southeast Asian country's economy is predicted to grow between 1 and 3 percent. (Source: singapore-guide.com)

Singapore (VNA) – The Monetary Authority of Singapore (MAS) and the central bank of Singapore, on July 25, forecast a 1-3 percent growth for the country’s GDP growth in 2016 amidst a gloomy world economy.

In its annual report for 2015/16, MAS predicted that Singapore 's economic growth will remain sluggish, adding that the economy's performance in the second half of 2016 will not be too different from the first half.

The report revealed that Singapore 's real GDP growth came in at 0.8 percent in the second quarter on a quarter-on-quarter, seasonally adjusted annualised basis. Growth in the first half of the year has averaged 2.2 percent in year-on-year terms.

Inflation, which has been low for a long period, is on a modest ascent, said the authority. Core inflation, which excludes accommodation costs and private road transport costs, is expected to rise gradually over the course of this year.

For the whole year of 2016, core inflation will likely average around 1.0 percent and trend towards its historical average of close to 2.0 percent over the course of 2017, MAS expected.

The sluggish growth of Singapore 's economy is amidst the outlook of lackluster growth globally. MAS noted that recovery in advanced economies is hesitant and uneven; and economic activity is slowing in the emerging market economies.

MAS is closely watching these developments, especially three factors that are key to the growth outcomes in 2016, namely, Brexit and its implications; the shape of the recovery in the US economy; and a slowdown in the Chinese economy.

The authority noted that the UK referendum vote to exit the EU will have an impact along several dimensions, not only on financial markets and possible consequences for financial stability, but also on political and social developments.

MAS expects that the US economy is to stay on a moderate expansion path, while China 's growth should slow, but without a "hard landing".-VNA