Singapore economy could only grow 2% next year: ICAEW

Weak manufacturing sector is seen a major drag.

Recent economic data have been disappointing in Singapore and the economy is expected to grow at a subdued pace by historical standards in 2017, said the Institute of Chartered Accountants in England and Wales (ICAEW)

According to ICAEW, GDP growth should be supported by an increase in government investment, and solid consumer spending growth.

"The country faces a number of structural challenges associated with a loss of competitiveness among some key manufacturing sectors that will continue to dampen growth over the coming years," it said.

ICAEW estimates overall GDP growth at 1.4% in 2016 and 2% in 2017, before accelerating to 3.5% in 2018 as global trade gradually improves.