Singapore Growth to Remain Weak Amid Global Risks, IMF Says

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(Bloomberg) --

Singapore’s economic growth will likely remain weak, weighed down by subdued global demand and a downturn in the electronics cycle, according to the International Monetary Fund.

Across the region, uncertainty about U.S.-China trade tensions and oil prices remain the biggest risks, Jonathan Ostry, deputy director of the Asia Pacific department, said at a joint conference hosted by the IMF and the Monetary Authority of Singapore on Wednesday.

The IMF last week lowered Singapore’s growth forecast for this year to 0.5% and estimates expansion of 1% in 2020.

These are highlights from some of the other speakers at the event:

Edward Robinson, MAS chief economist:

  • Infrastructure spending in Southeast Asia expected to rise next year
  • There’s scope for targeted fiscal spending to enhance infrastructure

Choy Keen Meng, MAS executive director:

  • Asian policy makers have pragmatically come up with instruments, frameworks to deal with foreign exchange and capital flow volatility
  • Authorities need to have structural defenses against volatility, something Asian economies have done well to build since the Asian financial crisis

©2019 Bloomberg L.P.

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