WASHINGTON | The International Monetary Fund (IMF) said Singapore’s economic growth slowed to 2% in 2019. This was due to global trade tensions which reduced external demand. As reported by Bloomberg on Tuesday (07/16/2019).
The IMF, based in Washington, United States, predicted that growth might be stable in the medium term by around 2.5%.
In May, the IMF estimated Singapore 2019 economic growth could grow 2.3%. That has dropped from the data in 2018, when Singapore was still able to growth of 3.2%.
The IMF, Bloomberg said, supports “the attitude of a broadly neutral monetary policy” and recommends that Singapore remain “dependent on data”. “If downside risks occur, fiscal policy must be the first line of defense,” the IMF said.
The IMF still believes Singapore’s financial system is resilient because it is supported by a strong regulatory and supervisory framework. The IMF also praised Singapore for macroprudential and other measures in the property market.
In a separate statement, the Monetary Authority of Singapore said it was reviewing the IMF’s recommendations and would take appropriate steps to strengthen financial supervision. (*)
