Outlook for 2012
Global economic growth is expected to slow
down to 2.5% in 2012.3
The main region of
weakness remains the Eurozone, which is
expected to enter a mild recession against a
backdrop of the sovereign debt crisis. The US
economy, on the other hand, has shown signs
of recovery in employment and consumer
spending, but growth may be held back by weak
fiscal conditions and continuing weakness in the
housing market. The emerging economies are
expected to see a moderation of growth due to
a less positive external environment, and weaker
domestic demand. In view of the slower global
growth, GDP growth for Singapore in 2012 is
expected to decelerate to between 1.0% and
3.0%4
, with CPI inflation ranging from 2.5% to
3.5%.5