More of the economists now believe trade protectionism, weak external growth and slower growth in China are downside risks Singapore faces.
SINGAPORE – More economists surveyed by the Monetary Authority of Singapore (MAS) now believe trade protectionism, weak external growth and slower growth in China are downside risks Singapore faces.
Concerned by further escalation of trade rhetoric by the United States and its trading partners, as well as the implementation of tariffs, nearly 90 per cent of the 23 economists who responded last month to MAS’ September 2018 survey of professional forecasters cited trade protectionism as a downside risk.
They nonetheless expect the economy to grow by 3.2 per cent this year and by 2.7 per cent next year, in forecasts unchanged from the MAS’ June survey.
Weak external growth was the second most commonly cited downside risk to the Singapore economy, with 42 per cent of respondents highlighting this as a risk factor, compared to just 11 per cent in the previous survey.
Faster-than-expected rate hikes by the US Federal Reserve and slower growth in China on the back of tightening credit conditions were other downside risks cited.