12 December 2012

Economists cut Singapore growth forecasts - 12 December 2012

Economists cut Singapore growth forecasts

SINGAPORE, Dec 12 (Reuters) - Economists have cut their economic forecasts and raised their inflation outlook for Singapore, a central bank survey released on Wednesday showed, in a further sign that the city-state is likely to face another year of sub-par growth and elevated inflation in 2013.

Economists now expect the Southeast Asian city-state's gross domestic product to grow by 1.5 percent this year, down almost a full percentage point from the median estimate of 2.4 percent in the previous poll, according to the Monetary Authority of Singapore's (MAS) latest quarterly Survey of Professional Forecasters.

To me, I believe that it is more realistic for Singapore government to achieve a long run 2-3% growth compared to the GDP growth that happened during recent years. It is not a good sign too if a country keep on growing its GDP by expanding into sectors that is not helping the community in long run. If we define the GDP growth again, the GDP growth mainly is from Government Spending, Private Investment, Retail Spending and Net Export. I hope that Singapore government can achieve a better GDP growth through innovation / subsidies to higher technology industry, so that Singapore can stay competitive enough when the bad time has arrived.

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