Chart of the Day: Singapore’s 2015 GDP growth forecast down as global economy struggles to recover

Like it or not, the challenge is here to stay.

2015 could possibly see the divergence in monetary policies across key central banks around the world.

As the global economy struggles in its recovery, uncertainties in the external environment will rise. DBS reports that the Fed is shifting towards a gradual normalisation of interest rates.

A divergence in global monetary policies will significantly impact the financial markets. DBS adds that Singapore, being a small and open economy, will be like a small boat in rough seas.

Amid such uncertainties and barring any negative shock, overall GDP growth is expected to average 3.2% in 2015, down from DBS’ previous forecast of 3.6% but slightly above the growth pace in 2014.

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