Economists expect lower Q3 growth; uncertainties in US remain a worry
Local economists have delivered a progress report on the economy and their prognosis is that it is a mixed bag, with some good news interlaced with doubts as well, mainly due to uncertainties in the United States.
Their views come ahead of advance estimates on third-quarter GDP growth from the Ministry of Trade and Industry next Monday, the same day the Monetary Authority of Singapore's policy statement is expected.
The consensus among economists is that expansion for the three months to Sept 30 will come in at 3.8 per cent year-on-year.
At first glance this matches second-quarter growth, which was also 3.8 per cent. But economists expect a pullback in quarter-on-quarter terms, saying the strong 15.5 per cent rise in the second quarter was not sustainable.
The recovery story is still uneven but there is some light at the end of the tunnel.
- OCBC economist Selena Ling