Despite the upbeat national mood ahead of Singapore's 50th birthday celebrations next month, economic sentiment is souring in the city-state, with analysts dramatically downgrading full-year gross domestic product (GDP) forecasts.
DBS, Southeast Asia's biggest lender by assets, now expects a 2.4 percent expansion in 2015, from 3.2 percent previously forecast. That would mark Singapore's slowest growth since the global financial crisis, the bank said in a report last week.
IMA Asia is even more bearish, calling for 1.9 percent growth, down from a previous 2.4 percent forecast.
In comparison, the government's forecast is for a 2-4 percent expansion this year , on top of 2.8 percent growth in 2014.
The downgrades precede Tuesday's release of official advance GDP estimates for the April-June quarter. Consensus opinion is for a 2.7 percent annualized increase, according to a central bank survey in June, a tad better than the first quarter's 2.6 percent expansion. But even that is too optimistic, argued Citi economist Wei Zheng Kit. He's only expecting a 1.7 annual boost for the second-quarter, citing broad-based weakness across the economy.