SINGAPORE (Reuters) – Singapore’s economy likely expanded at a slower pace in the second quarter as manufacturing lost momentum and as risks to the global trade outlook grew on the intensifying trade dispute between the United States and China.
From a year earlier, advance gross domestic product (GDP) was forecast to rise 4.0 percent in April-June, according to the median estimate of 12 economists surveyed by Reuters, slower than the 4.4 percent growth posted for January-March.
Government - Advance - Estimate - GDP - GMT
The government’s advance estimate of second-quarter GDP will be released at 0000 GMT on Friday.
“The modest easing is nothing more than a normalization process amid the peaking of the electronics cycle and higher interest rates,” said Irvin Seah, an economist at DBS Bank.
Horizon - Trade - Tensions - Singapore - Export
“(But) clouds on the horizon are gathering. Trade tensions between Singapore’s two largest export markets, the U.S. and China, could indirectly affect Singapore,” he said in a note.
The Ministry of Trade and Industry has forecast full-year growth of 2.5 to 3.5 percent in 2018. Manufacturing and exports of electronics were one of Singapore’s main drivers of growth last year, leading to a 3.6 percent rise in GDP in 2017, the fastest pace in three years.
Trade - War
“Despite trade war...
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