FINANCIAL NEWS – In its third quarter, Singapore’s economy expanded at a much slower pace. This is along with the government’s efforts of extending moderation in the current quarter. Further, the Singaporean government raised warnings regarding the possible impact of US-China trade war on the growth in 2019.
The softening outlook for Singapore depicts a shakeout in financial markets in the recent months. This is amid the worries of investors on world trade, investment, and corporate earnings prospects.
There was a 3.0% increase in the July-September quarter from the last three months on an annualized and seasonally adjusted basis. On Thursday, the Ministry of Trade and Industry (MTI) revealed the revised final figures.
That was well lower than the initial estimation of the government to 4.7% growth for October. Moreover, it was below than the median forecast of 4.2% in a Reuter’s poll of 11 analysts. The economy made a 1% expansion in the second quarter.
Canada has launched an investment tax break for businesses
The respite in the manufacturing sector drove a softer than expected economic momentum in the third quarter. This factor looks set in making the policymakers to become cautious amid the US-China trade war.
“We did expect industrial production growth to moderate. But the pace of moderation was more prominent than initially thought,” UOB economist Alvin Liew said.
The manufacturing sector of Singapore increased 3.5% in the third quarter from last year. It made a sharp slowdown from the 10.7% growth in the quarter earlier.
Financial News: Canada launches investment tax break
According to Finance Minister Bill Morneau on Wednesday, Canada will allow businesses to write off additional capital investments. This is to urge companies to become competitive at the time when the US makes aggressive acts to cut taxes.
However, Morneau said that Ottawa has no plans to cut taxes to match Washington’s aggressive moves.
