Global economic activity continues to firm up. Global output is estimated to have grown by 3.7 percent in 2017, which is 0.1 percentage points faster than projected in the fall and ½ percentage points higher than in 2016. The pickup in growth has been broad based, with notable upside surprises in Europe and Asia. Global growth forecasts for 2018 and 2019 have been revised upward by 0.2 percentage point to 3.9 percent. The revision reflects increased global growth momentum and the expected impact of the recently approved U.S. tax policy changes.

The U.S. tax policy changes are expected to stimulate activity, with the short-term impact in the United States mostly driven by the investment response to the corporate income tax cuts. The effect on U.S. growth is estimated to be positive through 2020, cumulating to 1.2 percent through that year, with a range of uncertainty around this central scenario. Due to the temporary nature of some of its provisions, the tax policy package is projected to lower growth for a few years from 2022 onwards. The effects of the package on output in the United States and its trading partners contribute about half of the cumulative revision to global growth over 2018–19.

Risks to the global growth forecast appear broadly balanced in the near term, but remain skewed to the downside over the medium term. On the upside, the cyclical rebound could prove stronger in the near term as the pickup in activity and easier financial conditions reinforce each other. On the downside, rich asset valuations and very compressed term premiums raise the possibility of a financial market correction, which could dampen growth and confidence. A possible trigger is a faster-than-expected increase in advanced economy core inflation and interest rates as demand accelerates. If global sentiment remains strong and inflation muted, then financial conditions could remain loose into the medium term, leading to a buildup of financial vulnerabilities in advanced and emerging market economies alike. Inward-looking policies, geopolitical tensions, and political uncertainty in some countries also pose downside risks.

The current cyclical upswing provides an ideal opportunity for reforms. Shared priorities across all economies include implementing structural reforms to boost potential output and making growth more inclusive. In an environment of financial market optimism, ensuring financial resilience is imperative. Weak inflation suggests that slack remains in many advanced economies and monetary policy should continue to remain accommodative. However, the improved growth momentum means that fiscal policy should increasingly be designed with an eye on medium-term goals—ensuring fiscal sustainability and bolstering potential output. Multilateral cooperation remains vital for securing the global recovery.

Asia’s major economies are poised for a year of slowing growth and central banks transitions. Asian regulators are likely to keep benchmark rates low a bit longer allowing them to address domestic issues and foster growth in 2018. In China drags from property and deleveraging are expected to shade growth down to 6.3% from 6.8% in 2017. China’s fintech market should continue to advance with online loans and payments leading the way while mobile and QR code payment growth should nudge it closer to a cashless economy. In Japan weaker exports and capes will add headwinds to reflation.

Singapore’s economic growth for 2018 is expected to come in at 3.2 per cent, according to the 24 economists and analysts polled. This is up from an earlier 3 per cent forecast in December.

For next year, expectations are for Singapore’s gross domestic product (GDP) growth to expand at a slightly slower rate of 2.8 per cent. Singapore’s GDP growth for 2017 was at 3.6%.

The 3.1 per cent quarter-on-quarter increase in the Urban Redevelopment Authority's private home price index based on its first quarter flash estimate has shocked most property consultants, who were expecting a rise of 1 to 2 per cent.

The rise is the steepest quarter-on-quarter hike since Q2 2010, when the index rose 5.3 per cent.

The upward charge in URA's price index came from both developers' sales and secondary market deals. The bullish land prices paid by developers over the past 15 months or so have been used as a basis for higher asking prices by both individuals selling their homes on the resale market, as well as developers.