Economists have cut their economic growth forecasts for Singapore in the third and fourth quarters of this year, as well as in 2017, due to continued concerns over Brexit and China’s economy. They have, however, kept their 2016 growth projections. Gross Domestic Product (GDP) is now thought to grow 1.8% next year, compared with 2.1% predicted by analysts in June. For Q3 of this year, the economists think GDP will now reach 1.7%, down from the 1.8% expected previously. Fourth quarter increases could hit 1.5%, a revision from the 1.7% estimated previously. The growth forecast for 2016 stands unchanged at 1.8%. Credit Suisse economist, Michael Wan said, “This outlook is rather optimistic, the pressure will remain, in fact, will intensify next year given structural risks like increasing costs and declining productivity around Singapore’s economy, which has led to several companies relocating operations at more cost effective locations.”
