Source: BMI, MAS, Bloomberg its high level of development, at just --.- in ----. We expect this level to gradually rise over the coming years as private consumption growth outpaces headline real GDP growth amid a tight labour market and strong real wage gains. ...Fixed Investment: Total investment stood at --.- of GDP in ----, and we expect this level to remain broadly stable over the next ten years. Singapore s current level of investment is appropriate, if not slightly high, for an economy at such an advanced stage of development, and we believe that it will be sufficient to maintain and continue to improve upon the coun- try s infrastructure and overall capital stock. We forecast total investment to rise slightly to --.- of the economy by ----. ...We forecast total investment to rise slightly to --.- of the economy by ----.
...Singapore s considerable exposure to the Chinese economy will weigh on its growth prospects over the next two years, and we have down- graded the city-state s real GDP growth forecast for ---- and ---- to -.- and -.- respectively. Meanwhile, the Singapore dollar will remain under pressure as the Chinese yuan depreciates and the MAS looks to ease its currency policy in April, taking the unit to SGD-.--/ USD by the end of ----. ...While China s economy expanded at a pace of -.- in ---- according to official statistics, it is our assertion that the actual rate of growth is considerably lower than this. Having become Singapore s single largest national export destination over recent years, China s slowdown will act as a disproportionately large drag on Singapore s growth prospects, and we have downgraded the latter s real GDP growth forecast to -.- as a result (from -.- previously). At the same time, the weakening of the Chinese yuan will take its toll on the Singapore dollar, and we have incrementally downgraded our end----- forecast on the unit to SGD-.--/USD, from SGD-.--/ ...Having become Singapore s single largest national export destination over recent years, China s slowdown will act as a disproportionately large drag on Singapore s growth prospects, and we have downgraded the latter s real GDP growth forecast to -.- as a result (from -.- previously). At the same time, the weakening of the Chinese yuan will take its toll on the Singapore dollar, and we have incrementally downgraded our end----- forecast on the unit to SGD-.--/USD, from SGD-.--/
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