QNB Expects Singapore Economy to Benefit from Firming Global Trade

Doha, October 29 (QNA) - Qatar National Bank (QNB) Group has published the Singapore Economic Insight 2017, a report that examines recent developments and the outlook for the Singaporean economy. Singapore is a highly open economy and its exports should benefit from firming global trade over the next three years, according to QNB report. As a result, real GDP growth in Singapore is expected to accelerate to an average of 2.6 percent over 2017-2019 Inflation is expected to exit deflationary territory in 2017, rising to 0.7 percent, and should continue to strengthen to 1.1 percent in 2018 and 1.5 percent in 2019. The improvement in inflation is expected to be driven by higher commodity prices and a gradual recovery in the housing market. The government is expected to continue its fiscal easing stance, reducing the consolidated fiscal balance to an average of 1.9 percent of GDP over 2017-19. Higher spending is aimed at stimulating domestic demand to counteract headwinds such as continued population ageing. The current account is expected to remain relatively stable at an average of 19.0 percent over the forecast horizon, supported by robust trade as a result of rising external demand. While the capital and financial account should remain broadly stable as Singapore's current account surpluses continue to be invested abroad. (QNA)