As specialists compared the numbers, it appears that Singapore’s economic expansion will continue this year as well, but at a slower pace this time. A report that was recently released by Oxford Economics, and backed up by the Institute of Chartered Accountants in England and Wales, predicts an economic growth of 3% for 2018, in comparison with the 3.6% growth that was recorded last year. This slight decrease happens due to the fact that the level of trade has decreased a little as well, together with the manufacturing demand. It is worth mentioning that this is not something that is specific to Singapore alone, as the entire south-east region of Asia is targeted by such changes. Thus, as exports slow down, the economic growth of the countries in this area will be supported by the demand generated by local markets.
What is the Ministry of Trade and Industry thinks about this? Well, officials predicted an economic growth that should be within the 2.5 and 3.5 range, as the decrease in the export sector will be covered by an improved domestic demand this year. The entire region is expected to slow down, the overall growth is predicted to reach 4.9% in 2018, in comparison with the 5.3% that was achieved in 2017. Still, there is one exception from this rule, as Indonesia will be the only country in the region that will maintain a faster growth rhythm.
Ms. Sian Fenner, a lead economist for Asia who represents the ICAEW Economic Advisor and Oxford Economics, stated that it was expected for exports to slow down their pace in 2018, as the global cycle concerning electronics will reach normal boundaries and China-based imports will begin to soften. But, as Mr. Mark Billington added, who is south-east Asia’s regional director of ICAEW, the exports will still contribute in a great deal to the economic growth of Singapore and, implicit, of the entire region, as the trade between China and the United States records no worsening in the existing frictions.
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