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Solid Singapore growth lays ground for possible tax, MAS moves

Singapore economy

Solid Singapore growth lays ground for possible tax, MAS moves

Bloomberg Published on Tue, Jan 02, 2018 / 11:15 AM GMT+8

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SINGAPORE (Jan 2): Singapore’s economy finished 2017 on a solid footing, allowing more room for policy makers as they consider raising taxes and tightening monetary policy this year.

Growth was faster than economists predicted last quarter, resulting in the strongest full-year expansion in three years, according to preliminary figures released on Tuesday. The data also confirmed the recovery is broadening out, with services industries, such as finance and transport, among the main drivers of growth in the fourth quarter.

The solid data are giving credence to economist forecasts for higher taxes when the government releases its budget on Feb 19, with one option being an increase in the goods and services tax. The Monetary Authority of Singapore may also shift to a tightening stance after opening the door to a possible move in its October policy meeting.