Singapore’s GDP outlook cut on global growth risk, says MAS survey

ECONOMISTS lowered their forecasts for Singapore’s growth in 2022, with external growth slowdown and inflation identified as the top downside risks to the economy. 

Singapore’s economic growth is expected to increase 3.5% this year from the previous estimate of 3.8%, followed by an expansion of 2.8% in 2023, according to a quarterly survey released by the Monetary Authority of Singapore (MAS). 

Forecasts for headline inflation were upgraded to 5.7% in 2022, 70 basis points higher than the prior estimate, before moderating to 3.5% next year. Core inflation is projected to rise to 3.8% in 2022 from 3.4% in the June report.

More than 70% of the respondents ranked an external growth slowdown among the nation’s trading partners as the top downside risk to the city state’s economic growth, and half of them were concerned about a faster-than-expected inflation. 

Tighter global financial conditions was most frequently cited as a factor that could potentially weigh on financial market and lending conditions in Singapore, followed by the escalating geopolitical tensions and financial markets in China. — Bloomberg