The government announced on Tuesday that they are expecting Singapore’s economy to slow to a 3.0% growth rate for 2014 amidst a global deterioration hitting the crucial trade outlook of the city-state. This may slow the sales of Westwood Residences.
In the 9 months to September a 3.3% expansion was seen, year on year, of the Gross Domestic Product (GDP). However, in a statement made by the Ministry of Trade and Industry, there is likely to be an easing in the last quarter that will be in line with the global economy’s projected slowdown. ECs like Westwood Residences however remain resilient as ECs are always in demand.
In 2013 there was a 4.1% expansion in Singapore’s GDP. 2014’s official forecast is a tad lower than the general agreement figure of 3.3% that was given by economists in a survey given this September by the Monetary Authority of Singapore.
Economy Slows may hamper Westwood Residences Sales
Analyst say that, due to Singapore’s open and small economy, they are more vulnerable to developments that are external, more so than their Asian neighbors. Singapore’s Asian neighbors have larger domestic markets in Westwood Residences to help cushion them when they face weak global demands for their exports.
The ministry has stated that, domestically, due to the cooling policies seen in the property market a weakness has been seen in private sector construction that affects growth. However, business services are expected to remain resilient.
Westwood Residences to receive Pent up demand
They further add that MTI has taken these factors into consideration and expects the economy in Singapore to grow by close to 3.0% for the total of 2014 which may result in slow EC sales such as Westwood Residences at Westwood Avenue.
The forecast for Singapore’s GDP in 2015 is that it will come in at 2.0% to 4.0%, not taking into consideration any downside risks to the global economy.
There have been concerns regarding the Eurozone falling into a deflation spiral due to its weak growth and continued low inflation. Meanwhile, China is risking a much steeper than expected slowdown if there is a sharp correction in the real estate market.
Westwood Residences Heeton Homes
Where the United States is concerned, it is unclear as to the timing and pace that interest rates will be raised by the Federal Reserve. The ministry pointed out that, should there be an unplanned for tightening in monetary conditions, it would heavily weigh on United States business sentiments and financial markets, a scenario that would also affect the global markets.
The MTI also shared that other downside risks have been the Ebola virus global outbreak, tensions between key oil producers in North Africa and the Middle East, and the geopolitical tensions between the Ukraine and Russia.
Regional economist with Malaysian bank CIMB, Song Seng Wun has pointed out that what it all boils down to is that Singapore’s economic growth will more than likely remain mediocre at around 3.0% for as long as the recovery of external demand stays unbalanced and disheartening.