Real GDP grew by 2.7% in the first quarter of 2017 year-on-year, but private domestic demand, particularly private investment, remains subdued.

There had been two consecutive years of weak net employment generation, although wages had increased and income inequality declined.

Higher energy and utility prices saw consumer price inflation turn positive after nearly two years of negative readings, the IMF said.

Singapore’s growth was projected in a 2.5-3% range over the medium term, though only by 2-2-.5% in the short term.

It said Singapore was pursuing “an ambitious technology-driven, innovation-based growth model for the future [but] considerable uncertainties remain.”

The IMF’s executive board assessment found: “Singapore’s transition to a new growth model has had to cope with structural and cyclical headwinds. Lower potential growth is related to aging, tightening of foreign worker inflows and slow productivity growth.”