Illustrative image (Source: VNA)Singapore (VNA) - The Ministry of Tradeand Industry (MTI) of Singapore has forecasted that the country’s economy willexpand by between 1-3 percent in 2017 following a growth rate of 2 percent lastyear.
The forecast came in the context that the global economyis expected to slightly recover in 2017 and the US and ASEAN economies improve,even as China’s growth continues to moderate.
However, the MTI warned that the global economy’srecovery might be unsecured as political risks and economic uncertainties may arise with the upcoming elections in key Euro zoneeconomies and the UK is going to embark on negotiations on its exit from theEuropean Union (EU).
According tothe MTI, there are also signs of a rise in anti-globalisation sentiments andprotectionist approaches could generate knock-on effects on economic growthworldwide.
Political risks and thelack of clarity on the policies of the new US administration have alsoheightened economic uncertainties globally and led to financial marketvolatility.
These uncertainties may inturn weigh on business and consumer confidence, thereby dampening investmentsand consumption, and causing a pullback in global growth, it added.
The MTI predicted that several sectors arehoped to support Singapore’s economic growth this year, particularly themanufacturing sector.
Data released by the MTI showed that Singapore’s economy grew by 2percent in 2016, higher than the forecast figure of 1.8 percent thanks to ahigher-than-expected growth rate of 2.9 percent in the fourth quarter.-VNA
