Singapore slashed its economic growth forecast for 2019 amid uncertainties due to the prolonged trade dispute between the U.S and China.
The Ministry of Trade and Industry cut its GDP growth outlook to between zero percent and 1.0%, with the rate of expansion seen at around the midpoint of the forecast range. The ministry previously projected growth to come in at between 1.5% and 2.5%.
Officials said uncertainties and downside risks in the global economy have increased since the last forecast in May, citing the prospect of higher U.S. tariffs, a growth slowdown in China and other geopolitical risks.
The ministry anticipates the weaker-than-expected performance of the electronics and precision engineering clusters in the first half to continue for the rest of the year due to weaker global semiconductor demand. It also expects growth in other trade-related services sectors, such as transportation and storage, to ease amid slowing global trade volumes.
Singapore's economy grew 0.1% year over year in the second quarter, compared with a 1.1% expansion in the prior three-month period.
On a quarter-over-quarter basis and after seasonal adjustments, the economy contracted 3.3%, following a 3.8% growth in the first quarter.