Singapore Upgrades 2017 Growth Forecast to as Much as 3.5%

2 min readUpdated Jun 4, 2025Nov 24, 20173:00 AM

In this article (6)

Singapore raised its economic growth forecast for this year to 3 percent to 3.5 percent after third-quarter data beat projections on the back of stronger exports and manufacturing.

Highlights of GDP Report
Gross domestic product rose at a seasonally adjusted, annualized rate of 8.8 percent in the third quarter from the previous three months, higher than an earlier estimate of 6.3 percent Median estimate of nine economists in a Bloomberg survey was for 7.8 percent gain GDP increased 5.2 percent from year earlier, the fastest pace in more than three years, versus median estimate of 5 percent Economy seen expanding 1.5-3.5 percent next yearPrime Minister Lee Hsien Loong

Highlights of GDP Report

Gross domestic product rose at a seasonally adjusted, annualized rate of 8.8 percent in the third quarter from the previous three months, higher than an earlier estimate of 6.3 percent
Median estimate of nine economists in a Bloomberg survey was for 7.8 percent gain
GDP increased 5.2 percent from year earlier, the fastest pace in more than three years, versus median estimate of 5 percent
Economy seen expanding 1.5-3.5 percent next yearPrime Minister Lee Hsien Loong

A healing in global trade this year has helped boost export-reliant economies like Singapore’s, with manufacturing buoyed by demand for electronics goods. Growth has started to broaden out to other industries, such as services, giving economists and the government reason to upgrade their full-year projections. said earlier this week that growth could exceed 3 percent in 2017.

The trade ministry said on Thursday global growth is expected to improve next year, on the back of a pick-up in the U.S. and some emerging markets.

“We also see signs that the recovery is broadening,” with business services and retail looking better even though third-quarter growth was “primarily supported by manufacturing,” Loh Khum Yean, permanent secretary at the trade ministry, told reporters.

Manufacturing surged almost 35 percent in the third quarter from the previous three months, while the services industry, which makes up about two-thirds of economy, grew an annualized 3.2 percent. Construction continued to suffer, contracting for a third quarter by 5.3 percent.

Southeast Asia Boom

Growth has been surprisingly strong across Southeast Asia, with third-quarter data from the Philippines and Malaysia last week and Thailand this week exceeding forecasts, providing a more upbeat tone to the region as the U.S. Federal Reserve tightens monetary policy.

“The pace of growth of the Singapore economy is expected to moderate in 2018 as compared to 2017, but remain firm,”

Jacqueline Loh, deputy managing director at Singapore’s central bank, told reporters the monetary policy stance from October remains appropriate and the regulator will continue to monitor developments. The Monetary Authority of Singapore left its policy stance unchanged last month, but gave itself room to tighten if necessary.

In a separate report, International Enterprise Singapore forecast export growth of 6.5-7 percent for this year, compared with a previous estimate of 5-6 percent, and estimated 0-2 percent expansion next year.

“The pace of growth of the Singapore economy is expected to moderate in 2018 as compared to 2017, but remain firm,” the trade ministry said.

— With assistance by Myungshin Cho, and Ailing Tan

AdvertisementAdvertise with usMobile 320×100

Questions & Answers

What led Singapore to upgrade its economic growth forecast for this year?

Singapore upgraded its forecast because third-quarter data surpassed predictions. This was primarily driven by stronger exports and manufacturing, which performed better than expected. Growth also began to spread to other industries like services.

Which sectors contributed most significantly to Singapore's economic growth in the third quarter?

Manufacturing was the primary support, surging almost 35 percent from the previous three months. The services industry, making up about two-thirds of the economy, also grew, expanding by an annualised 3.2 percent in the third quarter.

What is the economic outlook for Singapore in the coming year, according to the trade ministry?

The trade ministry expects the pace of growth to moderate in 2018 compared to this year, but it anticipates the economy will remain firm. They also project global growth to improve next year, driven by the U.S. And some emerging markets.

Which industry performed poorly in Singapore during the third quarter?

The construction industry continued to struggle, contracting for a third consecutive quarter. Its decline was recorded at 5.3 percent, contrasting with the growth seen in other major sectors like manufacturing and services.

Reader pulse

How will Singapore's upgraded growth forecast impact regional retail investment?

21,995 votes so far