This year is not going to be good, economy-wise.
The Gross Domestic Product (GDP) annual growth rates started to go down since 2013 from 4.7% to 2.0% last year.
Inflation was down also from 2012 from 4.6% to negative 0.5% for 2015.
|Year||Annual Inflation Rate %||GDP Growth Rate %|
The Ministry for Trade and Industry (MTI) forecast for GDP for this year (2016) was between 1.0% to 1.5%. The survey by the Monetary Authority of Singapore (MAS) on private sector economists shows that the economy is to grow by just 1.4%, a shade lower than the upper end of the official projection.
With 1.4% to 1.5% GDP growth rate, it would be the lowest for 5 years.
Annual inflation rate is projected to be negative 0.5% for this year (2016) same as 2015. Two years of negative inflation rates is a problem. People and businesses may not be spending and waiting for further decline in prices of goods and services in the future. This is not going to grow the economy.
2016 is going to be poor for this year. The last time Singapore GDP growth rate was that bad was in 2008 (+1.8%) and 2009 (-0.6%). Year 2008 and 2009 was Global Financial Crisis (GFC). It appears that Singapore has not recovered from the GFC.
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