SINGAPORE ECONOMY TO SEE SLOWER GROWTH, SAYS THARMAN

SINGAPORE ECONOMY TO SEE SLOWER GROWTH, SAYS THARMAN

Oct 13, 2011

Singapore is expected to experience slower economic growth in the following years, as the global economy slows, said Monetary Authority of Singapore (MAS) Chairman and Deputy Prime Minister Tharman Shanmugaratnam.

“The global economic environment has become more uncertain. There is a general lack of confidence that the major advanced countries have the will to address the structural problems that underpin their weak economic growth and unsustainable fiscal positions.”

“The headwinds from slower global growth will mean slower growth in Singapore for the next few years,” he said.

He added that although inflation has been rising, it is expected to moderate by the end of the year.

“But we must be vigilant against a resurgence of cost pressures.”

“Continuous judicious management of the effective exchange rate of the Singapore dollar against a trade-weighted basket of currencies will help dampen inflationary pressures while supporting economic growth in an uncertain and volatile external environment,” said Mr Tharman.

Market analysts expect MAS to tone down the Singaporean dollar’s appreciation within the foreign exchange (FOREX) in its monetary policy statement. This move aims to keep inflation as low as possible without hampering economic growth at a time when the global economic outlook is bleak.

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