Singapore's economy expected to "expand at modest pace": MAS

Singapore's economy is projected to "expand at a modest pace" for the rest of 2015 and in 2016, said Monetary Authority of Singapore (MAS) in its half-yearly macroeconomic review released on Tuesday.

Singapore's overall GDP growth is expected to come in at around 2 percent to 2.5 percent in 2015, said MAS, and the external environment is likely to remain challenging in the quarters ahead.

Although U.S. economy has gained some traction, MAS warned that its growth has been largely consumption-driven, and mainly met by domestic supply.

The authority added that the region will also face challenges arising from China's slowdown and tighter external financing conditions.

MAS said that domestic IT industries will have to further confront the effects of ongoing reconfigurations in regional supply chains. Nonetheless, Singapore's strengthening linkages with emerging economies in regional supply chains could provide some support.

MAS said oil trading should remain buoyant when looking ahead, and domestic oriented industries will benefit from firm demand for essential services such as healthcare and education.