The Ministry of Trade and Industry (MTI) has lowered the GDP growth forecast for 2008 by half a percentage to 4% to 6%. This was lower than the whole year actual GDP growth of 7.7% in 2007.
Since November 2007, when the 2008 GDP was first forecasted to grow between 4.5% to 6.5%, the US economy has changed for the worse and conditions now do not warrant that optimism seen in November.
We are not certain how the US economy will be like in 2008. Will it be a recession? Will the US have a short or a prolonged economic downturn?
Besides slower growth, Singapore is also facing inflationary pressures. 2008 inflation forecast by MTI is expected to be 4.5 – 5.5%. This does not spell good news for residents in Singapore. The purchasing power of our Singapore dollar will now buy less with inflation.
Written on 2/16/2008 8:57 PM
Copyright © 2008, the author known as LKT in Singapore.
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