According to a comprehensive report from Worldway Immigration: On October 28, the Monetary Authority of Singapore (hereinafter referred to as "MAS") released its semi-annual Macroeconomic Review, stating that Singapore's economy is expected to continue its moderate growth over the coming quarters, with economic growth for this year and next projected to be between 2.5% and 3.5%.
MAS stated that outward-oriented industries will benefit from the recovery of the U.S. economy, with the rebound in U.S. information technology investment expected to drive demand for electronic products. At the same time, MAS also indicated that industries such as transportation, warehousing, and financial services may be affected by weak demand from China and Europe. MAS predicts that the uneven development across Singapore's industries will persist for some time.
Regarding the labor market, MAS noted that due to strong labor demand and the continued tightening of foreign labor policies, the labor market remains tight, and there is still significant pressure for wage increases.
Core inflation, which excludes the costs of accommodation and private road transport, is expected to maintain an upward trend through the fourth quarter and into next year. However, MAS stated that core inflation is expected to moderate to around 2% by the end of 2015, though this figure remains subject to the trajectory of oil prices in the coming months. The overall core inflation rate for 2014 is expected to remain between 2% and 2.5%, and between 2% and 3% in 2015.
The overall inflation rate for 2014 is projected to be between 1% and 1.5%, while for 2015 it is expected to be between 0.5% and 1.5%.
Looking ahead, MAS stated that industries such as financial services, information technology, and communications will continue to grow over the next few years and will continue to provide more employment opportunities in non-tradable sectors.
Worldway Immigration Editor