NTU expects Singapore's growth to be at lower end of 4 percent

Economists from NTU’s Economic Growth Centre (EGC) expect Singapore's GDP growth for 2008 to come in at 4 per cent, at the lower end of the government's 4 to 5 per cent range, and adds that risks are on the downside, especially in light of recent events in the global financial sector.

Asst Prof Choy Keen Meng leads the team responsible for the macroeconomic forecast at the centre’s Econometric Modelling and Forecasting Unit (EMU). The economists also expect inflation, which has hurt wage growth and consumers’ pockets for the year, to drop sharply to 3 per cent next year, as price pressures on the external front would have subsided by then.

On labour market conditions, Asst Prof Randolph Tan sees continuing strength in that segment, citing strong wage growth and job creation in construction and services.