Following the moderation in Singapore's growth during the first quarter of 2014, economists warn the city-state's growth trajectory could be volatile for the remainder of the year due to domestic and external headwinds.
Singapore's economy expanded 5.1 percent on year in the first quarter of 2014, in line with Reuters' expectations, according to advanced estimates released on Monday. The reading was slower than the 5.5 percent on-year expansion in the final quarter of 2013.
On a quarter-on-quarter, seasonally adjusted and annualized basis, the economy grew just 0.1 percent, slowing from 6.1 percent in October-December period.
"The gist is we're off to a slightly weaker start to 2014 - the growth profile will continue to be uneven because of the headwinds on both the domestic and external front," Selena Ling, head of treasury research and strategy at OCBC Bank told CNBC.
On the domestic front, Ling points to the city state's tight labor market which will act as a supply-side constraint on growth. The unemployment rate for Singapore citizens stood at 2.8 percent in December 2013, edging down from 2.9 percent in the same period a year earlier.