Here's why Singapore's modest economic growth will likely persist through 2017

GDP is forecasted to expand by 2.2% next year.

Singapore will be releasing its Q316 GDP figures this week and BMI Research expects headline GDP growth to be subdued due to external headwinds and the government's ongoing efforts to restructure the economy.

"Singapore is likely to experience modest real GDP growth through 2017, and we maintain our forecast for real GDP growth to comein at 1.7% in 2016 and 2.2% in 2017," said BMI Research, a Fitch Group company.

According to BMI Research, poor external demand and structural domestic trends will keep headline GDP growth subdued, although it believes that a marked deterioration in the labour market remains unlikely owing to the city-state's solid economic foundation.

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