Singapore’s economy to grow 3% in 2015, says ADB

Finance is the brightest spot.

The Asian Development Bank (ADB) forecasts Singapore’s economy to grow by 3% in 2015 and 3.4% in 2016, as global recovery gathers momentum and the service sector continues to strengthen.

The ADB believes that finance, insurance, and business services will be the main drivers of growth again in 2015 and 2016, but growth in labor-intensive sectors like construction, retail, and food services could be constrained by the persistently tight labor market.

Domestic demand will also expand as public investment and government spending on public transportation and health-care infrastructure is expected to rise.

Private consumption should benefit from higher government subsidies for education services and the enhancement of a low-income voucher scheme.