Economy

Singapore cuts 2016 GDP growth forecast after Q3 contraction

The Port of Singapore.
Chris McGrath | Getty Images

Singapore downgraded its economic growth forecast for this year after confirming a contraction in output in the third quarter, amid fresh uncertainty around global trade in the wake of Donald Trump's U.S. election victory.

The trade-reliant economy is expected to grow 1-1.5 percent this year, compared to the previous projection of 1-2 percent, the Ministry of Trade and Industry said in a statement on Thursday.

The economy shrank 2 percent in the July-September period from the previous three months on an annualized and seasonally adjusted basis, the Ministry of Trade and Industry said in a statement on Thursday.

That compared with the government's initial estimate on Oct. 14 of a 4.1 percent contraction and a median forecast of a 2.5 percent slump in a Reuters' poll.

Gross domestic product grew 1.1 percent in the third quarter from a year earlier, the latest government estimate showed, higher than the advance estimate of 0.6 percent growth. The annual growth figure had been forecast to be revised up to 1.0 percent, in the Reuters survey.

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