Singapore's Central Bank Expects Slowing of GDP Growth Amid Rising Trade Tension

Forex News

Escalation of the US-China trade war continues to damage economic growth of the other countries. According to today’s statement of the Singapore's central bank, an intensifying trade dispute between China and the United States is likely to hurt the city-state's economy in coming months, though the domestic growth impact of the dispute has so far been minimal.

The Monetary Authority of Singapore (MAS) said in its semiannual macroeconomic review said, that the trade frictions have had a limited impact on the Singapore economy thus far, but the negative spillovers could become more discernible in the latter part of this year and beyond. MAS expects GDP growth in a range of 2.5%–3.5% in 2018 and moderate slightly in 2019.

Still, Singapore has tightened monetary policy at both of its semiannual meetings in April and earlier this month, despite the risks to growth from trade tensions.

The tiny Southeast Asian state, a global trading hub and financial center, is seen as a bellwether for the global economy because its exports equate to around 200% of its output.