The Republic’s economy grew by 2.9 per cent in 2014, announced the Ministry of Trade and Industry (MTI) in a media release on Tuesday (Feb 17). The growth forecast for 2015 has been maintained at 2.0 to 4.0 per cent, the ministry added.
The economy grew 2.1 per cent on-year in Q4 2014. On a seasonally-adjusted basis, the economy expanded at a faster pace of 4.9 per cent, compared to 2.6 per cent in the previous quarter.
The global economic outlook has softened in recent months, and growth in 2015 is expected to be just marginally better than 2014, said MTI.
Externally-oriented sectors such as manufacturing and wholesale trade are likely to face headwinds, the ministry added. This is due to the softened economic outlook, with the Eurozone expected to remain weak and China’s growth expected to ease further due to sluggish real estate activities.
The Singapore labour market is expected to remain tight, with low unemployment and rising vacancy rates, said MTI. Sectors such as construction, retail and food services may have their growth weighed down by labour constraints.
However, other domestically-oriented sectors such as business services are expected to be resilient, said the ministry.