OUTLOOK FOR 1996

The outlook for the external environment remains positive, but sentiments in Europe and the US have turned less optimistic in recent months. Regional growth is also expected to be lower after strong growth in recent years. Prospects for the electronics industry remain bright though growth in demand is expected to moderate from that in 1995. With slightly slower growth in external demand and continued pressure on costs and competitiveness, the Singapore economy is likely to see slower growth in 1996. The Ministry of Trade and Industry has therefore retained its earlier forecast of 7-8% growth for 1996.