Reed Cavendish Wealth Management - Singapore Adjusts Growth Forecasts

TAIPEI CITY, Taiwan, November 23, 2018 (Newswire.com) - TAIPEI CITY, Taiwan, November 22, 2018 (Newswire) - Singapore has upwardly revised its growth forecast for this year after better-than-anticipated performance for both oil and non-oil exports.

Boosted by growth in exports of non-electronic goods, NODX (non-oil domestic exports) increased by 8 percent on an annual basis from July to September according to official data.

Total trade for the ASEAN country also increased, by 14.7 percent, in the third quarter; a significant increase from the 10.2 percent gain posted in the second quarter.

Although this year's growth forecast has been upwardly revised to between 3.0 and 3.5 percent, Martin Godwin, Head of Corporate Equity at Reed Cavendish Wealth Management says next year's outlook is less optimistic with a forecasted growth of between 1.5 and 3.5 percent.

Reed Cavendish Wealth Management analysts blame the ongoing escalation of the U.S.-Sino trade war for the loss of global business which will have a severe impact on worldwide economic development.

Analysts at Reed Cavendish Wealth Management have warned that Malaysia and Singapore will be the two ASEAN countries most impacted by the trade dispute as these nations have the highest level of participation in world value chains and are two of the world’s most free-trading economies.

With exports to China, one of Singapore’s biggest trading partners, cooling for 5 consecutive months and no sign of trade tensions easing, Singapore’s central bank has expressed concern that the U.S.-Sino trade war could have a negative impact on the country’s domestic economy.

For the time being, Singapore has held monetary policy and inflation outlook steady after a recent tightening of monetary policy by the Monetary Authority of Singapore at its second semi-annual meeting in October.

Source: Reed Cavendish Wealth Management