Singapore's economic growth in 2013-2014

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singapore-1Singapore’s economic situation
According to the Monetary Authority of Singapore (MAS), Singapore’s economic growth slackened the pace in the first half of 2014 however it is expected to grow by 2 to 4% this year. The annual MAS report for 2013/14 financial year was released on 24 July 2014. Managing Director of MAS Ravi Menon said the external environment was generally favourable with recent US economic data indicating continued economic expansion, while China’s economic growth is also intact. Central Bank is monitoring the ongoing conflicts in the Middle East and Ukraine; it reported that geopolitical risks are larger than macroeconomic risks this year. MAS also said Singapore’s financial centre continued to perform well in 2013, the fund industry saw assets under management grew 12% to S$1.82 trillion. Healthcare services, financial and business services should also do well, even as the manufacturing sector continues to restructure. As to inflation, Mr Menon said MAS aims to keep core inflation expectations anchored at about 2.5%. Singapore’s consumer price index (CPI) rose 1.8% in June from a year ago, slowing from May’s 2.7% pace as car prices rose at a slower pace, the Department of Statistics reported. But core inflation – which excludes changes in the price of private road transport and accommodation since these are influenced more by government policies – rose 2.1% year-on-year in June, just a touch slower than May’s 2.2% gain. Mr Menon said MAS’s current policy stance of allowing a modest and gradual appreciation of the Singapore dollar which will ensure core inflation stays within 2 to 3% this year. Singapore’s economy grew an average of 3.4% in the first six months of 2014 from a year ago.
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