Economists cut forecasts for Singapore growth this year and next: MAS survey

Officers workers at China Square Central in the CBD on Sept 25, 2014. Private sector economists expect the Singapore economy to grow 3 per cent this year, down from an earlier forecast of 3.3 per cent. -- PHOTO: ST FILE 
Officers workers at China Square Central in the CBD on Sept 25, 2014. Private sector economists expect the Singapore economy to grow 3 per cent this year, down from an earlier forecast of 3.3 per cent. -- PHOTO: ST FILE 

Private sector economists expect the Singapore economy to grow 3 per cent this year, down from an earlier forecast of 3.3 per cent.

They also lowered their forecast for growth next year 3.1 per cent from 3.7 previously, according to a quarterly survey by the Monetary Authority of Singapore (MAS), released on Wednesday.

The survey shows that economists are now expecting slower growth across most sectors of the economy compared with a similar survey conducted in September.

Growth in the manufacturing, construction, wholesale and retail trade, and accommodation and food services sectors are likely to be lower than previously expected, the latest survey showed.

The finance and insurance sector was the sole bright spot. Economists expect this sector to grow 7.3 per cent this year over last year, up from September's forecast of 5.5 per cent.

The latest poll reflects views received from 22 analysts who closely monitor the Singapore economy.

Survey respondents expect inflation for the year to come in at 1.1 per cent, down from September's estimate of 1.8 per cent.