Singapore is expected to experience economic growth of 2.4 percent over what was reported during the last quarter of 2017. Singapore’s growth is definitely on the upswing and the positive projections for the next quarter come from the Institute of Chartered Accountants in England and Wales. This organization is known as ICAEW for short.
The report which was published is known as Economic Insights: South East Asia. It shows signals that the business investment niche in the region is experiencing improvement, although it is not strong improvement. The report also projects that more hikes of rates in the United States are expected and that domestic interest rates are also likely to rise. These rises in interest rates might negatively impact economic recovery in Singapore. So, the report is cautiously optimistic.
The report also stated that investment won’t be as much of a drag on growth during 2017, due to increased spending by the government. As well, fiscal spending is expected to be somewhat stimulating to the economy, as the government announced spending initiatives for infrastructure projects.
Housing restrictions may also help the housing sector to improve economically. However, some time may be needed before the big over-supply is unwound. For this reason, the existing correction within the housing market may slow growth during the rest of 2017.
According to the report, house prices are falling, negative wealth is currently a factor and the labor market is a bit weak. All of these variables have contributed to household spending which is not as strong.
Conditions for employment during 2017 are expected to get better. Retrenchments in oil, gas and financial sector services are anticipated to ease up in the near future.
Nonetheless, private consumption growth is forecast to stay somewhat subdued. Wage growth has slowed and inflation is rising. This inflation is taking its toll on actual earnings.
Things Are Looking Up
Economic recovery doesn’t happen overnight. It’s a process and sometimes, there are small steps backward. With any luck, the projection of a 2.4 percent increase will come to pass and herald the beginning of a brighter economic reality for Singapore. The island city-state has weathered the shaky economic climate in Southeast Asia well and Singapore is definitely strong enough to survive.
Singapore is really a great place to do business. In fact, Google just committed to training a thousand small and medium-sized business owners in Singapore, in order to help them develop Web marketing skills which will help them to grow their businesses. This just scratches the surface in terms of what’s happening in Singapore. Another aspect of Singapore business culture which impresses investors and Singaporeans alike is the way that the government supports startups. In particular, fintech startups access plenty of support!
Now that you know the good news about future economic growth in Singapore, why not explore business opportunities, whether you’re a resident of the island city-state or a foreign investor? There are so many great ways to get involved in building Singapore’s economy as you also build some wealth of your own.