In the latest official economic performance report by the Ministry of Trade and Industry (MTI) yesterday (May 25), Singapore’s GDP for the first three months of 2016 stagnated at 0.2%. Slugged by worsening manufacturing results and declining exports, the MTI’s economic forecast was set at 0% in April. The overall GDP growth forecast for 2016 by MTI is 1% to 3%.
According to the MTI, the slowdown is a result of weakening global economic outlook. The manufacturing sector declined 1%, with transport engineering and precision engineering leading the decline. The service industry declined 5.9%, with most part of the decline from the wholesome and retail sectors. The construction sector saw 10.5% increase, largely due to the increase in government projects.
Through the MTI Permanent Secretary Loh Khum Yean, the Singapore government blamed the slowdown to slowing growth momentum in US, uneven recovery in Europe and moderate growth in China. The current Minister of MTI is Lim Hng Kiang, a board director with GIC, while the Minister of State for MTI is Koh Poh Koon, who has no experience nor knowledge in economics.
You may download the report here.