Singapore’s economy may see an increment by the end of 2020. The nation’s economy is driven by the likelihood of continued monetary easing and the possible diversion of economic activity. SGP’s 2020 GDP growth is predicted at 1.7% after revising the 2019 real GDP growth forecast to 0.5% after the second consecutive quarter.
There are many cases that are making sense of a slight growth pick up in 2020 such as low base effects, especially in gross fixed capital formation and the likelihood of continued monetary easing.
The manufacturing sector is driving data SGP and the economy in the third quarter of the year and subtracting 0.7 percentage points from headline growth after 0.6 ppt subtraction in the second quarter. The technical recession is low in the country and investment growth will continuously stabilize in the coming quarters.
In addition, the Monetary Authority of Singapore is estimated to continue easing policy in a bid to support investment and exports. This allows the latest decision made by the central bank on 14 October to slope the nominal effective exchange rate and reduce the rate of appreciation of the undisclosed policy band.
The service sector can also take benefit from the projected rise of mainland Chinese tourists and economic activity away from Hong Kong. The area is the most popular destination for Mainland Chinese tourists. It is hosting the outbound Chinese at the third position in the three years between 2015 and 2018.
