Singapore’s economy grows slower in Q2 than expected

Singapore’s economy grows slower in Q2 than expected. (Photo: CNBC)

Hanoi (VNA) – Singapore’s economy in the second quarter of 2018 expanded just 3.8 percent from the same period last year, and only 1 percent from the previous quarter, a result slower than the median forecast of 4 percent and 1.2 percent in a Reuters poll of economists.

Manufacturing and exports of electronics were one of Singapore’s main drivers of growth last year. However, a decline in electronics shipments for six consecutive months has raised questions about overall demand in the sector.

Earlier this month, the Monetary Authority of Singapore warned that risks to the global growth outlook have increased significantly due to the intensifying trade war and the rising prospect of inflation.

Chief economist at Continuum Economics Jeff Ng noted that one of the risks to Singapore’s economy may come from supply chain risks from the US-China trade tensions. Meanwhile, measures to cool down the real estate market may also limit Singapore’s short-term domestic growth, he added.

Last week, the country, in a surprise move, imposed some curbs on the housing market.

In April, Singapore’s central bank tightened its monetary policy for the first time in six years. Some analysts believed the move is the start of a longer-term tightening cycle.-VNA