Singapore Cuts Growth Outlook Amid Escalating Trade Disputes

Singapore Cuts Growth Outlook Amid Escalating Trade Disputes

This suggests only 0.6 percent growth in the first half of 2019 and the big picture is that the government downgraded the outlook for 2019 for the second time to only 0-1 percent from 1.5 to 2.5 percent previously.

Upon looking at the global and domestic economic environment, and the performance of Singapore economy in the first half of the year, the Ministry of Trade and Industry (MTI) revealed on Tuesday (13 August) that the gross domestic product (GDP) growth forecast for this year is slashed to "0.0 to 1.0%", adding that the growth is expected to come in at around the mid-point of the forecast range.

Going forward, MTI said that the GDP growth in many of Singapore's key markets such as the United States (US) and China are expected to either slow or remain similar to the first half of this year.

Risks may also arise from uncertainties in Hong Kong, the trade dispute between Japan and South Korea, as well as tensions in North Korea and the Strait of Hormuz, he added.

The wholesale & retail trade sector contracted by 3.2 per cent year-on-year, larger than the 2.5 per cent decline in the previous quarter. Its next scheduled semi-annual meeting is in October, when it is widely expected to ease policy. -China trade war and global growth concerns due to its reliance on foreign trade with China and global supply chains.

The latter was in line with the fall in Singapore's non-oil domestic exports during the quarter, especially in electronics.

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Upon reviewing the economic performance in the second quarter of the year, MTI noted that the global growth outlook has weakened further since its last Economic Survey in May.

Prime Minister Lee Hsien Loong said in his National Day message last week that Singapore is feeling the pains of the trade war, and the government is willing to stimulate the economy if needed.

"It feels like the storm is coming if you look at the whole macroeconomic fundamentals softening", OCBC Bank (華僑銀行) head of treasury and strategy Selena Ling (林秀心) said.

Demand for ivory from Asian countries such as China and Vietnam, where it is turned into jewels and ornaments, has led to a surge in poaching across Africa.

But environmentalists say poached ivory can be disguised as legal as long as trade is allowed in licensed outlets on the high street and online.

"The ban will mean that the sale of elephant ivory and ivory products, and public display of elephant ivory and ivory products for the objective of sale will be prohibited", it said.

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