Singapore growth to pick up in 2017, but weak global outlook a risk

Singapore growth to pick up in 2017, but weak global outlook a risk

SINGAPORE - Singapore's economic growth is expected to accelerate next year, supported by accommodative fiscal and monetary policies, but the weak global outlook remained a risk, the International Monetary Fund said.

In its latest "article IV" assessment of Singapore's economy, the IMF said growth was expected to slow to 1.7 per cent this year from 2 per cent in 2015, but will pick up to 2.2 per cent in 2017.

"Economic activity will be supported by accommodative policies, along with low energy prices and the ongoing global recovery," the Fund said in a statement late on Friday.

"However, near-term risks are skewed to the downside, including from slow global and regional growth and spillovers from renewed global financial volatility."

The IMF expected headline inflation to remain negative in 2016, before accelerating to 1.1 per cent in 2017.

The Fund said the current "expansionary" fiscal stance and the central bank's latest easing move in April were appropriate.

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