During 2017, private and public institutions have made various polls among business owners in Singapore and the last survey had indicated a 2.5% economic growth in November. The last report was issued in the last days of 2017 when the sentiment of investors has improved and determined to economists to say that the economy would end the year with a 3.3% increase. Foreign investors who want to start their business in the city-state are invited to discuss with our lawyers in Singapore about their options.
Singapore has several institutions which use various tools to make close determinations on how the economy would perform during the year. As the end of year approaches, the Monetary Authority of Singapore can assess how close to the truth these projections are. This time, they were right: from the beginning of 2017 the economic growth for the city-state was forecast to range between 2 and 3%.
The last month of 2017 brought more optimism among private economists which projected the year would end with a 3.3% increase in Singapore’s Gross Domestic Product. This forecast was based on the results registered by the country in the 3rd quarter: 5.2% which was the highest quarterly growth since 2013.
The most performant industry was, as expected, manufacturing, which had little variations throughout the year. The end of the year has brought a 10.6% increase at the end of the year, even if the last predictions issued in September 2017 indicated a 6.6% growth.
The higher global demand has contributed to this growth, however manufacturing has also received a helping hand from the improved trading relations between China and the United States.
The second industries to grow were finance and insurance which, according to the last estimations, got closer to a 3.7% increase.
For 2018, manufacturing is expected to continue growing, even if at moderate pace. Construction is also believed to register a slight growth this year. As for the overall economy in 2018, it is expected to register its best momentum towards the end of the year.
If you are interested in opening a company in the city-state in 2018, please contact our law firm in Singapore for information on the newest legislation changes.
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