14:23 | 30/06/2019 Global Economy
The Singapore economy is likely to end the year weaker than earlier expected in the context that the ongoing tension between the US and China has stalled three of the world’s growth engines — trade, manufacturing and investments, warned Monetary Authority of Singapore (MAS) Managing Director Ravi Menon on June 27.
Illustrative image - Photo: nikkei.com
He also said that the Singaporean Ministry of Trade and Industry and the MAS are reviewing the 1.5 to 2.5 percent GDP growth forecast for this year, which was just slashed last month.
The present forecast hinges on the economy stabilising in the third quarter of the year and a modest pick-up thereafter, he added.
Menon noted that global manufacturing is in a “synchronised downturn”, global trade volumes have declined for two straight quarters and global investments have suffered from weakening business confidence.
Nevertheless, he stressed that the global economy is "not headed for a crash", as it is supported by healthy private consumption in Asia and other major economies and a resilient services sector worldwide.
Last year, he said, Singapore’s economic growth was driven by trade and modern services.