Singapore’s Ministry of Trade and Industry forecasted the economy to grow at rate as low as 0.5 percent going into 2020, according to newly released report by the government.
The report stated the economy was expected to conclude with dismal 0.5 to 1 percent growth rate and go into the next year with a forecast from 0.5 percent to 2.5 percent.
The Singapore economy dropped precipitously in the second quarter, experiencing a 2.7 contraction, and many analysts expected the ongoing US-China trade war and disruptions in global manufacturing chains to sink the city-state into recession this year.
While not in technical recession, the economy still faces transformational pains due to the reorganizing of global supply chain due to the global tariff wars. Traditional electronic segment of the manufacturing sector faced sharp demand downturns this year, according to the economic report.
“The manufacturing sector shrank by 1.7 per cent year-on-year, moderating from the 3.3 per cent decline in the preceding quarter,” stated the report. “The sector was weighed down by the electronics cluster, which contracted on the back of a decline in output in the semiconductors segment.”
Despite its lackluster economic growth results this year, the World Economic Forum (WEF) ranked Singapore as the most competitive economy in the world.
The competitive index was formulated to take into account the drivers of economic growth and how efficiently labor and investment capital “combined for generating output.”
“The country ranks first in terms of infrastructure, health, labor market functioning and financial system development,” concluded the WEF report.
Additionally, Singapore became the only Asian country to crack the top 10 on the World Talent Rankings list, compiled by Switzerland-based business school IMD. Singapore’s highly developed education system increased its scores enough to overtake Germany in the rankings.
The IMD rankings measured the countries’ investment and development in talent through education and apprenticeship programs and other quality of life factors that would encourage the retainment of talent and attraction of foreign overseas talent.