External factors weighing on Singapore economy

Global uncertainty will continue to cloud Singapore's economy, and the country will have to look to domestic drivers for growth this year.

The Monetary Authority of Singapore (MAS) said in its twice-yearly macroeconomic review yesterday that the contribution from trade-related sectors is expected to recede, and slower growth in Singapore's trading partners will continue to weigh on the economy.

Modern services - which include professional, financial and technology services such as cyber security and banking - will be key in driving growth.

Sectors such as construction and consumer-facing services are also expected to stay on a recovery path.

Inflationary pressures remain in check this year although higher costs are expected for essential services, which cover education, healthcare and domestic services.