According to Kunal Ghosh, emerging market portfolio manager at Allianz Global Investors, the GDP revision wasn't a surprise but Singapore's outlook very much depends on external sectors.
"You cannot look at Singapore in isolation. You need to look at it with the developing world, the U.S. and Europe and rest of Asia," said Kunal Ghosh, emerging market portfolio manager at Allianz Global Investors.
"The part which is making us very optimistic is how China is positioning itself after everything. When you want to look at Singapore, you need to look at what's driving Asia and that's China, which is the key to the next 12-18 months and how shares will shape up ahead," he added.
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Singapore has been working to reduce a politically unpopular reliance on foreign labor as part of a push to increase the economy's productivity, but the move has led to a tight labor market, putting upward pressure on wages and raising business-related costs.
Some economists have recently either downgraded or noted downside risks to their full-year growth forecasts, citing factors such as weakness in manufacturing activity and concerns about the impact of the ongoing economic restructuring.