A view of Singapore (Photo: VNA)Singapore’s economy is forecasted to see moderate growth in 2015 and 2016 with this year’s gross domestic product (GDP) estimated to increase 2-2.5 percent.
The Monetary Authority of Singapore (MAS)’s recent bi-annual macroeconomic review warned the Southeast Asian region will face obstacles from the deceleration of China’s economy and tightening external financial conditions.
The MAS asserted that the island state’s information technology industry will have to confront the impacts of restructuring in the supply chain of the region. Yet the strong bond between Singapore and other emerging economies, including Vietnam, could ultimately boost the country’s industries.
Information technology will play an important role in bolstering Singapore’s economy, the agency said, adding that the country will benefit from turnover growth of trade, advanced technology and high-value services.
Investments in the digital revolution such as hardware and software in information technology as well as research and development are expected to be major driving forces of future economic activities.
During the new development phase, the labour force should have compatible technical and soft skills but enterprises are facing pressure due to high operation and labour costs.
According to the MAS, the country’s inflation has remained at its lowest rate since April. Core inflation hovered about 0.3 percent in the second and third quarters, compared to 1.1 percent in the first three months of last year.-VNA
