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Singapore Third-Quarter GDP Shrinks Less Than Government Estimated

  • Government forecast non-oil exports to improve in 2017
  • Export-dependent nation at risk from global trade slowdown
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Singapore Downgrades 2016 Growth Forecast

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Singapore’s government cut the top end of its 2016 growth forecast as exports in the trade-dependent nation remain under pressure, adding that the economy will probably avoid a recession.

Growth in the export-driven economy is under pressure amid a slowdown in global trade and lower energy prices that’s hurting the oil and gas services industry. It expanded 2 percent last year, the slowest pace since 2009, and the government forecasts even lower GDP growth this year of 1 percent to 1.5 percent -- down from a previous estimate of as much as 2 percent. That’s presented a challenge to the Monetary Authority of Singapore, which kept its policy stance unchanged last month even as it forecast no significant improvement for 2017. The government is estimating growth of 1 percent to 3 percent next year.