Analysts on Singapore’s GDP Growth Forecast in 2018
Singapore is one of the main financial hubs in the world but investors are experiencing a sense of gloom against the backdrop of sluggish growth. In the latest report by top analyst polled by Monetary Authority in the country (MAS) the economic prospects in the country are not looking good.
The economic analysts have again cut growth forecast for 2016 to a modest 1.9%. This is down from an earlier projection of 2.2% that had buoyed the spirits of investors and consumers alike.
The survey done in March 2016 closely compares to projections from the Trade and Industry ministry which had set growth rate at between 1-3% for 2016. According to analyst this would be the lowest growth rate since 2009 when the country had started an upward trend after the global recession.
Decent Result in the Prevailing Conditions
The survey also contained the factors that are responsible for the downward forecast including falling oil and gas prices, sliding Chinese growth and a struggling house market in the country.
"When you put all these factors into play managing a 2% annual growth in 2016 will be a major achievement," says Mr Richard Jerram the chief economist at the Bank of Singapore. There was general pessimism about the insurance sector and financial, and increase in the business loans in Singapore obtained in the past few months with the analysts projecting a 3.6% growth in the two sectors down from 5.9% in a Q4 2015 survey. The manufacturing sector also received a downgrade in the forecast and it is expected to contract by 2.7%.
One of the exceptions in the survey is the construction industry which is expected to grow by about 2.6% a significant increase from 1.2% in the December survey.
Negative Inflation a Positive Sign
The survey also whittled down their expectations for the inflation in 2018 with CPI for all items expected stand at -0.2%. This compares with the projections of an increase in the previous survey. Core inflation excluding private transport and accommodation has been cut to 0.8% down from 1% in the previous survey.
"This is the first time Singapore will witness below zero headline inflation for 2 straight years," noted Mr Irvin Seah of DBS Bank. “While the negative headline inflation of 0.5% is already a multiple year low the core inflation rate remains above zero due to factors such as rental costs,” added the economist.
The report by the analysts has prompted the view that MAS will ease its policy setting in its next announcement.
The Five Best Businesses To Invest In 2018
Let’s discuss what the business and business ideas to spend in 2018 are!
The year 2017 is walking fast steps to its end, and 2018 is right there at the door. With a new year, it’s good to think of all the new opportunities with new businesses, but it is not easy to decide in which area to bet since the markets change at a dizzying pace. In this article, we present five businesses that will be a trend in 2018!
Healthy And Alternative Food
More than a matter of fashion, betting on a healthy diet is a must for all people who want to live well. 2018 seems to be the year of maturation of the fit and alternative food market. More and more people are intolerant to gluten and lactose and that privilege a diet without animal-derived products. If you are thinking about betting on a business related to catering, a restaurant with healthy food seems to be a great option in the coming year!
Creation Of Applications
It is not a secret for us that technology has changed our way of working and even living in society. Smartphones and mobile devices, in general, are increasingly an essential part of people's lives and are no longer just an accessory, but a necessary element. Therefore, the applications that facilitate daily life guarantee great success in 2018.
It is a market trend and promises to evolve and grow next year. It is an area little exploited, so the opportunities are immense. Despite being a lovely area, it is essential to keep in mind that betting in this sector requires a lot of training and investment.
Just look at Snapchat to perceive that virtual reality has been part of our lives in recent times. However, its applicability goes far beyond entertainment. The future is expected to be dominated by this type of technology, despite the high cost of research and development in this sector. The area of medicine will be one of the most positively affected by virtual reality through surgical simulations. This factor can lead to new cures and new forms of treatment.
Increasingly some liberal professionals work alone. However, working at home can be a real problem, to the extent that motivation decreases and makes people more unhappy. Many professionals look for spaces where they can work close to other people, to exchange ideas and find ways of synergy. Coworking - a workspace divided between people from different areas - is already a reality in the United States of America, but has not yet been explored in many regions. Betting on these spaces is a good idea in the year that will enter.
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