A corner of Singapore (Photo: EPA/VNA)
Singapore’s Ministry of Trade and Industry (MTI) said the country's 2019 economic forecast could be cut again considering the weak performance in the second quarter and strong headwinds in the global economy.
The forecast stands at between 1.5 percent and 2.5 percent, and may be revised down further in the MTI’s preliminary growth estimates to be released in August.
During the April-June period, the economy shrank 3.4 from the first quarter, prompting warnings of a technical recession, or two consecutive quarters of slowdown.
As a small and open economy significantly influenced by external developments, Singapore is vulnerable to negative quarter-on-quarter growth, the ministry said.
However, it pointed to areas of strength, including the IT, education, health and social services sectors, noting that Singapore’s full-year growth is not likely to be negative.
In such context, the Government was said to continue supporting businesses and workers to build capacity for the long term, such as via the Enterprise Development Grant for firms to scale up and Professional Conversion Programmes to improve workers’ skills./.