Surprise 2.1% growth, but outlook grim

An office worker at Raffles Place.
An office worker at Raffles Place.PHOTO: LIM YAOHUI FOR THE STRAITS TIMES

A last-minute sprint helped the Singapore economy end 2015 on a better-than-expected note, but analysts say there are few reasons to cheer.

An unexpected lift in the last three months boosted economic expansion for the year to 2.1 per cent - better than forecasters' expectations, but still the slowest since 2009.

Economists warn that the outlook for global growth remains challenging, and 2016 will be an even tougher year, especially for export-dependent sectors like manufacturing.

Advance Ministry of Trade and Industry estimates yesterday showed growth of 2 per cent from October to December over the same period a year ago. It exceeded economists' forecasts of a 1.2 per cent hike. Manufacturing was the worst performer.

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Risks remain but economists pin growth hopes on service sector

A version of this article appeared in the print edition of The Straits Times on January 05, 2016, with the headline 'Surprise 2.1% growth, but outlook grim'. Print Edition | Subscribe