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Friday, December 9, 2016

How will Singapore economy perform in 2017?

http://www.businesstimes.com.sg/government-economy/nomura-sounds-bearish-call-on-spore-economy-cuts-2017-gdp-growth-forecast

Nomura predicted that SG's economy will grow by 0.7% in 2017 which is far below the 1-3% predicted by our government.

However, Deutsche predicts that SG will grow by 2.3% in 2017.

http://business.asiaone.com/news/singapore-economy-could-expand-23-2017-deutsche-bank

Who is correct?

I think Deutsche is too optimistic on SG without an in-depth understanding of the surrounding economic situations.  Pakistan port has started operations and will reduce port cargoes to SG which has never existed before.   Furthermore, interest rates will be higher in 2017 and this will increase business costs.  Last but not least, asian currencies depreciation will create inflations in Asia.

I just can't see how SG will perform so well in 2017 with 2.3% growth when there's so many negative factors.

3 comments:

Eric Ho said...

Not to mention the China-Cambodia port which will also reduce cargoes to SG. I'm confident to say that SG port will have lower than 30M TEU in the future.

Eric Ho said...

https://sg.finance.yahoo.com/news/singapore-economy-could-only-grow-225100858.html

I wanna laugh when I read this article because local economists know that consumer consumption is a negligible component of SG GDP. If consumer consumption plays a major role in our economy, we'll be using interest rate to manage our inflation, not our currency.

Eric Ho said...

http://business.asiaone.com/news/economists-cut-singapores-gdp-growth-forecasts-14-2016-15-2017-mas

This article will refute the optimism by ICAEW. Hahaha!