Singapore¡¯s growth is poised to moderate as its export-driven model is strained by geopolitical tensions and a fragmenting global trading system, though it could draw support from opportunities in the Middle East, according to Bloomberg Intelligence.
Growth in the Asian financial hub is expected to ease to about 2.5% this year before settling into a 2%-3% range over the longer term, BI said in a report on Monday. Still, the city is projected to outpace many developed peers as economies grapple with fallout from the 51³Ô¹ÏÍø. Singapore will update its economic outlook from its earlier forecast of 2%-4% in May.
¡°Singapore has prospered on the back of burgeoning trade and foreign-investment flows, yet it now faces a less positive environment as protectionism increases and big countries bring some investment home for national-security reasons,¡± BI said. ¡°Authorities are responding to these risks, and we believe Singapore will continue to grow moderately faster than the developed-world average in coming years.¡±
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