ECONOMY | Staff Reporter, Singapore

Analysts raise 2017 GDP growth forecast to 3.3%

But three in five think the Chinese economy's slowdown can hinder growth.

According to forecasters, Singapore's economy is expected to grow 3.3% YoY in 2017.

The Monetary Authority of Singapore's (MAS) survey of professional forecasters revealed that the figure is an upgrade from 2.5% YoY median forecast in the previous survey.

In terms of indicators, economists were more bullish on manufacturing GDP at 10.6% YoY, finance & insurance at 3.7% YoY, and wholesale & retail trade at 1.7% YoY.

The outlook for the construction sector turned sourer as it dipped from -4.2% YoY to -7.6% YoY.

Almost half or 47% of the analysts believe that the electronics sector presents a strong potential upside for the Singapore economy.

External growth is cited by 40% of respondents, up from 35% in September. Exports upswing, which accounted for 35% of all responses in September, now represents only 13% of the survey responses.

In its place, property market recovery is the third most common response, cited by 27%.

There is also no change to the composition of the top three downside risks from the September survey.

However, a much greater percentage of respondents, at 67%, believe the slowdown in the Chinese economy poses a significant potential downside. Geopolitical uncertainty in North Korea and the Middle East, as well as global trade protectionism, continue to be major concerns.

In this survey, 40% of respondents expect them to be potential hindrances to growth, down from 47% in September.

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