THE Government of Singapore expects the country's gross domestic product (GDP) to grow between 2.5 per cent to 3.5 per cent in 2018 after last year's expansion of 3.6 per cent.
"There is a risk of a further escalation of the ongoing trade conflicts that could lead to a vicious cycle of tit-for-tat measures between the US and other major economies," the trade ministry said.
"Should this happen, there could be a sharp fall in global business and consumer confidence, and in turn, investment and consumption spending," said the official statement.
Services, which make up 65 per cent of the economy, expanded 0.4 per cent in the second quarter from prior three months. Manufacturing grew 1.8 per cent, while construction plunged 15.4 per cent.
In a separate release, Enterprise Singapore raised its forecast for non-oil exports this year to 2.5 to 3.5 per cent.